IRS Releases Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information R

July 4, 2017 Adam Rivera

The IRS has released an updated Publication 1179 for Tax Year 2017. This publication provides guidelines for those who create and provide substitute information returns to follow.  There are a few changes from the previous revision:

  • Vendor codes
    • The use of a vendor code is encouraged in place of a form printer EINs
    • The 4-digit vendor code, preceded by four zeros and a slash, for example 0000/9876, must appear in 12-point Arial font, or a close approximation, on Copy A only of Forms 1096, 1098-BTC, 1098, 1099, 3921, 3922, 5498, and W-2G.
    • The vendor code is used to identify the forms producer. Vendor codes can be obtained free of charge from the National Association of Computerized Tax Processors (NACTP) via email at
    • Issuers developing 1099 family forms to be used only for their individual company do not require a vendor code
  • Form 1042-S
    • Beginning in 2017, withholding agents will be required to assign a unique identifying number to each Form 1042-S filed.
    • Beginning in 2017, withholding agents filing an amended form must indicate the amendment number
      • The “UNIQUE FORM IDENTIFIER,” “AMENDED,” and “AMENDMENT NO.” boxes must be printed at the top center of the form under the title
    • “Pro-Rata Reporting” box was moved from the form down to new box 15
  • Form 1098
    • New box 10, number of mortgaged properties. Filers must report the number of properties in excess of one (1) that secure a single mortgage.
  • Form 1098-T
    • Announcement 2016-42 provides that no penalties will be imposed under section 6721 or 6722 for reporting the aggregate amount billed, instead of the aggregate amount of payments received, for qualified tuition and related expenses.
    • Beginning in 2018, only the qualified tuition and related expenses actually paid can be reported
  • Forms 1099-A and 1099-C
    • D. 9793 removes the rule that a deemed discharge of indebtedness for which a Form 1099-C must be filed occurs at the expiration of a 36-month nonpayment testing period
  • Form 1099-OID
    • Box 11 was added to report tax-exempt OID
  • Form 1099-S
    • A new checkbox has been added as box 5 to report the transfer of real estate by a foreign person. Buyer’s Part of Real Estate Tax is now box 6.
  • Form 5498
    • Report late rollover contributions certified by the participant in boxes 13a and 13b. Report the self-certification code in box 13c.
  • Form W-2G
    • The text in box 1 has been changed from “Gross winnings” to “Reportable winnings.”
      • This change was meant to clarify that for certain types of gambling activity, the amount shown in box 1 is gross winnings less the amounts of the wager or buy-in
    • Penalty Increases
      • Penalties have gone up again for incorrectly filed information returns
    • Updated Languages for Printing Instructions
      • The list of Forms that required the statement “Return this entire page to the Internal Revenue Service. Photocopies are not acceptable” have been listed:
      • Forms 1097-BTC, 1098, 1098-C, 1098-E, 1098-MA, 1098-Q, 1098-T, 1099-A, 1099-B, 1099-C, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-PATR, 1099-Q, 1099-R, 1099-S, 3921, 3922, 5498, and the print on Form 1096
    • New Exclusion
      • The words “2017 General Instructions for Certain Information Returns” are not bolded on Form 1098-MA
    • New Required Legends
      • 1099-K now requires the following legend:
        • “This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if taxable income results from this transaction and the IRS determines that it has not been reported.”
      • New Requirements
        • The OMB number must be printed in the format “OMB. No. 1545-0056.

 To view the recently release Publication 1179, please click the link below.

The post IRS Releases Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns appeared first on Sovos.

About the Author

Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.

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