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What is Form 1099-LS?

Form 1099-LS is used to report acquirer interest in a life insurance contract/policy in a reportable policy sale to report the acquisition. An acquirer is any person that acquires an interest in a life insurance contract (through direct acquisition or indirect acquisition of the interest) or in a reportable policy sale which means the acquisition of an interest in a partnership, trust, or other entity that holds an interest in a life insurance contract may be an indirect acquisition of that interest in a life insurance contract and could be a reportable policy sale.

The tax implications of a life insurance settlement should be considered prior to the sale of the life insurance policy. Tax2efile makes it easy to import, print and e-file the Form 1099-LS directly to IRS.

How to File Form 1099-LS?

Information required to file Form 1099-LS:

Taxpayer’s (ISSUER/ACQUIRER) information
Policy number
Acquirer’s information

The policy number is required if, the taxpayer has multiple policies for a recipient for whom they are filing more than one 1099-LS Form.

Filer Instructions

Box 1: Amount Paid to Payment Recipient

Box 2: Date of Sale

Who can use Form 1099-LS?

Form 1099-LS can be used if you are the acquirer of any interest in a life insurance contract in a reportable policy sale. Tax filings who have acquired interest from a life insurance contract may not need to report on Form 1099-LS if, the received interest in the life insurance contract was provided in generosity, if you qualify for an exception under Regulations section 1.6050Y-2(f), or a third-party information reporting contractor reports on your behalf under the unified reporting provisions of Regulations section 1.6050Y-2(b). You may qualify for the Regulations section 1.6050Y-2(f) exception if you are a foreign person, if you report reportable policy sale payments made to a person other than the seller under section 6041 or 6041A, or if you acquire a life insurance contract in a section 1035 exchange. Additionally, enter the name, address, and telephone number of your information contact, if different from your own. This contact information must provide direct access to a person who filed the return.

If you have questions related to e-filing your Form 1099-LS or simply have questions about your return, reach out to the Tax2efile team for help.

Form 1099-LS deadlines

Filing Type	Deadline
Recipient Copy	January 31
IRS Paper Filing	February 28
IRS Electronic Filing	March 31

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file on the next business day.

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