IRS published new 1099 forms with FATCA updates

IRS published new 1099 forms with FATCA updates

November 6, 2014, 3:22 am EST in Tax Tips

The IRS recently published new 1099 forms that include a new feature for reporting information related to the Foreign Account Tax Compliance Act (FATCA). These forms include: Form 1099-OID, Original Issue Discount, Form 1099-INT, Interest Income, and Form 1099-DIV, Dividends and Distributions.

The forms include a new checkbox titled "FATCA filing requirement." This box is for foreign financial institutions (FFIs) and U.S. payors to designate their chapter 4 filing status.

The IRS published instructions for the updated Forms 1099-OID and 1099-INT earlier in October. The agency also released new instructions for Form 1099-MISC, Miscellaneous Income, which included the checkbox for FATCA regulations and a paragraph regarding revised steps for submitting corrections to the IRS. However, the accompanying form was not published with this batch.

Other 1099 form changes coming in 2015
The forms' FATCA-related updates are not the only changes the IRS has planned for 1099 forms. A number of forms will have revisions in 2015.

Changes to Form 1099-MISC, for example, also include a deletion of Boxes 11 and 12, Foreign tax paid and Foreign country or U.S. possession, respectively. These details have been moved to Form 8966, Foreign Account Tax Compliance Act Report.

The IRS added two other boxes, Boxes 10 and 11, to Form 1099-INT. These additions are for a new tax reporting requirement, which is related to covered securities under the condition that those assets are acquired with an acquisition premium, market discount or bond premium.

Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc, will include a distribution code change. Individual retirement account assets that don't have an available fair market value will be designated with distribution code K.

For more information tax information reporting forms, check out our education section.