Your quick guide to information returns
All individuals who conduct business in the form of a corporation, estate, partnership, or trust and report on all transactions annually are required to fill out information returns to inform the IRS about these financial operations. If you have 250 or more returns, you should file them electronically. The filers should provide these reports to all other involved parties as well.
There are different types of returns. We will detail some of them:
General reporting includes points to account for: mortgage interest, data about an acquisition, cancellation of a debt, distributions, interest income, third-party network operations, royalties, rents, etc. The required forms are 1098, 1099-MISC, 1099-A, 1099-B, 1099-DIV, 1099-C, 1099-K, 1099-INT, and 1099-S.
Education returns include student loan interest, qualified tuition, related expenses or refunds, payments from eligible tuition programs, rollover contributions, etc. The federal tax return information form list contains 1098-E, 1098-T, 1099-Q, and 5498-ESA.
The health insurance part consists of premiums, payments under long-term care insurance, HSA, Archer MSA, Medicare Advantage MSA distributions, etc. You may need to submit forms 1099-H, 1099-SA, 1099-LTC, 1094-C, and 1095-B.
The transfer of stock section has two forms to submit: 3921 and 3922.
An applicant has to file a retirement information return to inform about retirement or profit-sharing plans distributions. The forms are 1099-R and 5498.