Understanding the difference between IRS 1099-A and IRS 1099-LTC

Last updated on Dec 8, 2025

What is IRS 1099-A?

The IRS 1099-A form is used to report the acquisition or abandonment of secured property. This form is typically issued when a lender or financial institution allows a borrower to walk away from a loan secured by property, such as real estate.

The purpose of the IRS 1099-A is to inform the IRS about the status of the loan and the property associated with it, helping to clarify the tax implications for the borrower.

1.

You may need IRS 1099-A if:
2.

You have foreclosed property.
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Your property was repossessed by a lender.
4.

You abandoned property that was secured by a loan.
5.

You received property as part of a loan settlement.

Who needs to complete an IRS 1099-A?

Typically, the lender or the entity that possessed the borrower’s secured property is responsible for completing this form.

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Typically required for:
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Financial institutions handling foreclosures.
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Entities repossessing real property.
4.

Mortgage servicers managing defaulted loans.
5.

Borrowers who abandoned the secured property.

When is IRS 1099-A due?

The IRS 1099-A form must be filed by January 31 of the year following the event that triggered the form's issuance. For instance, if property was foreclosed upon in 2023, the form must be submitted by the end of January 2024.

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What is IRS 1099-LTC?

The IRS 1099-LTC form is designed for long-term care benefits, enabling reporting of payments made under a long-term care insurance policy. This form differentiates between the payments received for qualified long-term care services and those not eligible for tax exemption.

The purpose of the IRS 1099-LTC is to inform both the insured and the IRS of the tax obligations associated with long-term care benefits, ensuring that the taxpayer understands the taxable amounts.

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You may need IRS 1099-LTC if:
2.

You received payments from a long-term care insurance policy.
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You have a policy that provides for the reimbursement of long-term care expenses.
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You are the beneficiary of a long-term care policy.
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You received care that qualified for insurance benefits under your policy.

Who needs to complete an IRS 1099-LTC?

This form is generally completed by the insurance company or plan administrator that pays out the benefits.

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Typically required for:
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Insurance companies providing long-term care benefits.
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Plan administrators handling benefit distributions.
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Service providers associated with long-term care services.
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Individuals receiving long-term care payments.

When is IRS 1099-LTC due?

The IRS 1099-LTC form must be filed by January 31 of the following year after the payments were made. For example, if payments were issued in 2023, the form is due by the end of January 2024.

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Key differences between IRS 1099-A and IRS 1099-LTC

While both the IRS 1099-A and IRS 1099-LTC serve important roles in tax reporting, they are used in different contexts and for different types of transactions. Understanding their differences can help you identify which form is applicable to your situation.

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Main differences include:
2.

IRS 1099-A is for real estate and property transactions, while IRS 1099-LTC pertains to long-term care benefits.
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IRS 1099-A is issued by lenders, whereas IRS 1099-LTC is issued by insurance companies.
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IRS 1099-A is typically related to foreclosures and abandonments, while IRS 1099-LTC covers health care payments.
5.

Filing circumstances and deadlines may differ, with both due by January 31 but regarding different events.

Understanding potential penalties

Tax penalties occur when taxpayers fail to file forms accurately or on time, which can lead to additional fines and enforcement actions by the IRS. Recognizing these risks is crucial to maintaining compliance during tax season.

Filing an IRS 1099-A incorrectly or failing to do so can lead to significant consequences. The IRS can impose penalties ranging from $50 to $270 per form, depending on how late the form is filed. In severe instances of disregard or intentional disregard, fines can escalate to $540 per form. Such penalties can impact credit scores and incur interest on unpaid tax liabilities.

Similar to IRS 1099-A, incorrect filing or neglecting to submit an IRS 1099-LTC can cause financial repercussions. The penalties for failing to file, or for inaccurate completion, can range from $50 to $270 per form. Significant errors can also result in heightened penalties, including those reserved for fraudulent submissions, which can be quite severe.

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Author:

by Iryna Marchuk

Lead Writer/Blogs Manager at airSlate

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