Form 1099-A is used to report the Acquisition or Abandonment of Secured Property to the IRS. This essentially means that when a property is seized or foreclosed upon by a lender, certain information must be reported to the IRS. Some of this information includes,
The date of the acquisition
The principal remaining on the loan when the property was acquired
Fair market value (FMV) of the property
Whether or not the borrower is personally liable for the debt
A description of the property acquired
This form is typically filed by the lender, this would be the financial institution that provided the loan. The lender must file the 1099-A with the IRS and distribute a copy to the borrower.
What is Form 1099-LTC?
Form 1099-LTC is used to report information about Long-Term Care and Accelerated Death Benefits to the IRS. This form is generally filed by insurance companies and any other providers of these benefits.
These companies must file Form 1099-LTC and distribute a copy to the policyholders or insured individuals to report the following information,
The gross long-term benefits that were paid out
Any accelerated death benefits paid out
The type of account
The date this was certified
What is the deadline to file Forms 1099-A and 1099-LTC?
Forms 1099-A and 1099-LTC have the same deadlines.
The IRS requires that recipient copies of these forms be distributed no later than January 31st.
Any forms that are paper-filed must be submitted to the IRS by February 28th. However, the IRS prefers that businesses file their returns electronically.