The IRS has released a draft for a new information return form that has been created as a result of the recently-passed Tax Cuts and Jobs Act. The new form is 1098-F, Fines, Penalties, and Other Amounts.
Form 1098-F, beginning on January 1, 2019, will be used by a government or government entity to report fines, penalties, and other amounts to recipients who paid those amounts. This new form is a result of the Tax Cuts and Jobs Act because of a new provision in the tax law that greatly expands the scope of the disallowance of deductions for fines and penalties paid to government agencies. The new law disallows a tax deduction for any payment made to a government entity where the payment was made in relation to a violation of law or the investigation of a violation. Additionally, it also disallows deductions for payments made to third parties at the direction of a government agency.
To view the new form, please click the link below.