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

Wendy Walker
April 15, 2020

This blog was last updated on 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.

Reserve your spot for free today.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Wendy Walker

Wendy Walker is the Vice President of Regulatory Affairs 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.
Share this post

North America
June 6, 2024
Observations and Predictions: The Future of Tax and Compliance

This blog was last updated on June 6, 2024 When I became the CEO of Sovos one year ago, I knew that I was stepping into an innovative company in an industry primed for a seismic transformation. However, even with this knowledge in place, I must admit that the speed and scope of change over […]

North America Tax Compliance
September 6, 2024
What is SAP Clean Core and What Does that Mean for Tax? Part I

This blog was last updated on September 11, 2024 Much is being made about the introduction of SAP’s ‘Clean Core’ concept and how it will impact a business’ ability to customize its ERP to meet the unique needs of its operation. In this first blog in a series taking on the issue of Clean Core, […]

North America Tax Information Reporting
September 6, 2024
IRS Pushing for Filing Due Date Changes to Combat 1099 Fraud

This blog was last updated on September 6, 2024 Millions and millions of tax dollars are lost to fraud every year due to stolen identities, dishonest tax preparers or claims of false tax losses or dependent information. The IRS deploys a variety of processes to detect fraud including analyzing information reported on third party information […]

IPT North America VAT & Fiscal Reporting
August 30, 2024
Applicability of IPT to Warranty Services

This blog was last updated on September 5, 2024 Italy: IPT Treatment on Used Vehicle Warranty Services On 21 May 2024, the Italian tax authority published a ruling (No. 110/2024) on the IPT treatment of warranty services provided in relation to the sale of used vehicles. The ruling dealt with a scenario in which a […]

North America Unclaimed Property
August 29, 2024
Delaware’s Second Round of Verified Report Requests Released

This blog was last updated on August 29, 2024 Delaware recently released the second round of Verified Report requests by mail addressed to the Tax/Escheat Departments with the subject line Notice Requesting Verified Reports for Report Year 2023*. All companies should be on the lookout for the Notice, even if your organization was audited by […]

North America ShipCompliant
August 27, 2024
2024 Direct-to-Consumer Wine Shipping Mid-Year Report

The direct-to-consumer (DtC) wine shipping channel has seen a continuation of movement tracked in the January release of the Sovos ShipCompliant/Wine Business Analytics Direct-to-Consumer Wine Shipping Report, with the top destination states experiencing a dip in volume and value.  The latest data for the U.S. wine DtC shipping market reveals shipment data trending downward. Nationwide, […]