Instructions for Form 1099-LS, Reportable Life Insurance Sale

• Legal Form Number: 1099-LS
• Year: 2025
• Issuer: Treasury Department
• Section: Treasury Department

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Instructions for Form

1099-LS

(Rev. December 2019)

Reportable Life Insurance Sale

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 1099-LS and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form1099LS.

Reminders

In addition to these specific instructions, you should also

use the current General Instructions for Certain

Information Returns. Those general instructions include

information about the following topics.

•Who must file.

•When and where to file.

•Electronic reporting.

•Corrected and void returns.

•Statements to recipients.

•Taxpayer identification numbers.

•Backup withholding.

•Penalties.

•Other general topics.

You can get the general instructions at IRS.gov/

1099GeneralInstructions or go to IRS.gov/Form1099LS.

Continuous-use form and instructions. Form 1099-LS

and these instructions have been converted from an

annual revision to continuous use. Both the form and

instructions will be updated as needed. For the most

recent version, go to IRS.gov/Form1099LS.

Online fillable Copies B, C, and D. To ease statement

furnishing requirements, Copies B, C, and D have been

made fillable online in a PDF format available at IRS.gov/

Form1099LS. You can complete these copies online for

furnishing statements to recipients and for retaining in

your own files.

General Instructions

This form is used by the acquirer of any interest in a life

insurance contract (also known as a life insurance policy)

in a reportable policy sale to report the acquisition. In

general, a reportable policy sale is any direct or indirect

acquisition of any interest in a life insurance contract if the

acquirer, at the time of the acquisition, has no substantial

family, business, or financial relationship with the person

insured under that contract, apart from the acquirer’s

interest in such life insurance contract. See section 101(a)

(3). Certain exceptions may apply. See Regulations

section 1.101-1(c)(2). The acquisition of an interest in a

partnership, trust, or other entity that holds an interest in a

life insurance contract may be an indirect acquisition of

that interest in a life insurance contract and may be a

reportable policy sale. See Regulations section 1.101-1(e)

(3)(ii).

Who Must File

Generally, file Form 1099-LS if you are the acquirer of any

interest in a life insurance contract in a reportable policy

sale.

An acquirer is any person that acquires an interest in a

life insurance contract (through a direct acquisition or

indirect acquisition of the interest) in a reportable policy

sale.

You may not have to file Form 1099-LS if the interest in

a life insurance contract was transferred to you

gratuitously, if you qualify for an exception in Regulations

section 1.6050Y-2(f), or if another acquirer or third party

information reporting contractor reports on your behalf

under the unified reporting provisions of Regulations

section 1.6050Y-2(b). You may qualify for an exception in

Regulations section 1.6050Y-2(f) if you are a foreign

person, if you report reportable policy sale payments

made to a person other than the seller under section 6041

or 6041A, or if you acquire a life insurance contract in a

section 1035 exchange.

If you are the acquirer, enter your name, address,

telephone number, and taxpayer identification number

(TIN). Additionally, enter the name, address, and

telephone number of your information contact, if different

from your own. This contact information must provide

direct access to a person who can answer questions

about this information return.

Reporting

If you are the acquirer, you must file a separate Form

1099-LS for each payment recipient with respect to each

interest in a life insurance contract you acquired in a

reportable policy sale. Enter the name, address, and

taxpayer identification number (TIN) of the payment

recipient, the name of the issuer of the life insurance

contract, the policy number of the life insurance contract,

the amount paid to the payment recipient, and the date of

the sale. See Regulations section 1.6050Y-2.

Payment Recipient

In general, a reportable policy sale payment recipient

(payment recipient) is any person that receives a

reportable policy sale payment in a reportable policy sale.

A payment recipient may include any seller in the

reportable policy sale (any person that holds an interest in

a life insurance contract and transfers that interest, or any

part of that interest, to an acquirer in a reportable policy

sale), as well as any broker or other intermediary that

retains a portion of the cash or other consideration

transferred in the reportable policy sale. See Regulations

Nov 20, 2019 Cat. No. 71418S