IRS Publishes Draft Instructions for Form 1098-F

The IRS recently published draft instructions for the 2019 Form 1098-F: Fines, Penalties, and Other Amounts.

Form 1098-F is a new form created and required by Section 6050X, which was enacted as a part of the Tax Cuts and Jobs Act of 2018. Government or government entities that exercise self-regulatory powers must file a separate Form 1098-F for each fine, penalty or other amount paid in excess of amounts determined by the Secretary that is paid in relation to any violation of law or investigation into the potential violation of the law, pursuant to a court order or agreement.

As these instructions are currently in draft form, elements such as the payment threshold have yet to be determined. To review these instructions in full, please visit the IRS website by clicking here.

Author

Paul Ogawa

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.
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