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Our user-friendly software is designed to take the stress and confusion out of E-filing your 1099-SB.

Form 1099-SB is an information return form used to report the seller's investment in the contract/surrender amount related to interest in a life insurance contract. if the filer is the issuer of a life insurance contract and they receive a statement from an acquirer in a reportable policy sale provided under section 6050Y (a) or the filer receives notice of a transfer of the life insurance contract to a foreign person..

In general, a reportable policy sale is any direct or indirect acquisition of any interest in a life insurance contract if the acquirer, at the time of the acquisition, has no substantial family, business, or financial relationship with the person insured under that contract, apart from the acquirer’s interest in such life insurance contract. The acquisition of an interest in a partnership, trust, or other entity that holds an interest in a life insurance contract maybe an indirect acquisition of that interest in a life insurance contract and may be a reportable policy sale.

How to File IRS Form 1099-SB?

1099 SB Form

Here are the boxes on the form that may show amounts or other information. Boxes for the policies information:

  • Box 1: Investment in Contract
  • Box 2: Surrender Amount

What you will need to file Form 1099-SB:

  • Taxpayer's (ISSUER/ SELLER) information
  • Policy number
  • Policy investment information

If the filer is required to file Form 1099-SB, they must furnish a statement or acceptable substitute to the seller, such as Copy B of Form 1099-SB.

Watch our step by step video for Form 1099-SB

The contact information provided will give you direct access to a person who can answer questions about this form. If blank, the contact information is the same as the ISSUER. Now that you know about the IRS 1099-SB Form, you can work with a great tax advisor or preparer to get the most accurate tax reporting and get the most out of your return.

Who can use Form 1099-SB?

1099-SB can be used by issuers of life insurance contract when either of the following occur:

  • You receive a statement from an acquirer regarding a policy sale such as a Form 1099-LS, reportable transfer of life insurance, or interest in a reportable policy sale.
  • You receive notice of a transfer of life insurance contract to a foreign person.

The insurance carrier is required to provide a Form 1099-SB to the seller and the IRS reporting the seller’s investment in the contract and surrender value of the contract as of the date of the transaction. There are three copies of the Forms: one copy for the IRS, one for the Seller, and one for the Issuer.

When is the Form 1099-SB deadline?

Filing Type Deadline
Recipient copy January 31st
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

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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