Looking for an efficient way to file your 1099-LS online? IRS-approved Tax1099 allows you to eFile your 1099-LS with security and ease, all online. IRS Form 1099-LS is used to report the acquisition of a life insurance contract or any interest in a life insurance contract in a reportable policy sale.
Form 1099-LS, "Reportable Life Insurance Sale," is the IRS information returns to report a life insurance contract or any interest in a life insurance contract. The buyer or acquirer of the policy will have to file Form 1099-LS to report the information about the sale to the IRS. This has the effect of exposing clear-cut taxation of sale of life insurance policies that could sometimes be fraught with tax implications to both the buyer and seller.
Who Must File Form 1099-LS?
Form 1099-LS must be filed by any person or entity that acquires a life insurance contract, or any interest in one, in a reportable policy sale. This includes insurance companies, brokers, or any individuals who purchase a policy for investment purposes. This form helps a company properly report and comply with the U.S. tax law.
Form 1099-LS Requirements
When filing Form 1099-LS, the buyer or acquiring party must provide the following details:
Name, address, and TIN (Taxpayer Identification Number) of the buyer.
Seller's name, address, and TIN.
Date of the sale of the policy or interest in the policy.
Payment amount made for acquiring the policy.
Issuer information about the life insurance contract.
Form 1099-LS Due dates- 2024
The deadline for filing Form 1099-LS is January 31st of the year following the calendar year in which the reportable policy sale occurs. This deadline ensures timely reporting of transactions that may have tax consequences.
Filing
Type
Due Date
Recipient Copy
Monday - February 17, 2025
IRS eFile
Monday - March 31, 2025
IRS Paper Filing
Friday - Feb 28, 2025
Form 1099-LS penalties for late filing
The IRS charges penalties to one who fails to file Form 1099-LS in time. Penalties are charged if the form is not filled in correctly, on time or with wrongful information. The length of delay while filing the taxes incurs consequential penalties, and the penalties become substantial with willful disregard to filing requirements.
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The CFSFP Combined Federal State Filing Program allows parts of your federal eFile to be transmitted to the state at no extra charge. Non-participating states must receive a direct file. Learn more about state filing here.