The Top 5 Challenges of Forms 1099-LS and 1099-SB

Wendy Walker
April 15, 2020

Forms 1099-LS and 1099-SB were born out of the 2017 Tax Cuts and Jobs Act (TCJA) as part of the Life Settlement reporting section. They were first introduced for the 2019 tax season, and require reporting from both the purchaser and the life insurance carrier when a life insurance policy is sold to a new owner or when a policy transfers to foreign ownership. 

Below are the top five challenges life insurers are facing in their first year reporting Forms 1099-LS and 1099-SB:

  1. Determining what criteria necessitates Form 1099-SB
  2. Receiving multiple Form 1099-LSs from varying companies for the same policy 
  3. Receiving Form 1099-LSs with incorrect information
  4. Form 1099-LS received through multiple locations internally
  5. Lack of clarity on corrections and extensions for Forms 1099-LS and 1099-SB

Register for the free 1099-LS & SB webinar to learn how to overcome these challenges, with insight from leading tax professionals.

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Author

Wendy Walker

Wendy Walker is the principal of Tax Information Reporting solutions at Sovos. She has more than 15 years of tax operations management and tax compliance experience with emphasis in large financial institutions, having held positions with CTI Technologies (a division of IHS Markit), Zions Bancorporation and JP Morgan Chase. Wendy has served as a member of several prominent industry advisory boards. She graduated with a BS in Process Engineering from Franklin University and earned her MBA from Ohio Dominican University, in Columbus, Ohio.
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