Instructions for IRS Form 1098-F "Fines, Penalties, and Other Amounts"

This document contains official instructions for IRS Form 1098-F, Fines, Penalties, and Other Amounts - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1098-F is available for download through this link.

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Instructions for Form 1098-F
Department of the Treasury
Internal Revenue Service
(Rev. December 2019)
Fines, Penalties, and Other Amounts
Section references are to the Internal Revenue Code
Statements to be furnished to payers. If you are
unless otherwise noted.
required to file Form 1098-F, you must provide a
statement to the payer. For more information about the
Future Developments
requirement to furnish a statement to the payer, see part
For the latest information about developments related to
M in the current General Instructions for Certain
Form 1098-F and its instructions, such as legislation
Information Returns.
enacted after they were published, go to
IRS.gov/
Truncating payer's TIN on statements to payers.
Form1098F.
Pursuant to Regulations section 301.6109-4, all filers of
Reminders
this form may truncate a payer’s TIN (social security
number (SSN), individual taxpayer identification number
In addition to these specific instructions, you should also
(ITIN), adoption taxpayer identification number (ATIN), or
use the current
General Instructions for Certain
employer identification number (EIN)) on statements to
Information
Returns. Those general instructions include
payers. Truncation is not allowed on any documents the
information about the following topics.
filer files with the IRS. A filer’s TIN may not be truncated
Who must file.
on any form. See part J in the current General Instructions
When and where to file.
for Certain Information Returns.
Electronic reporting.
Corrected and void returns.
Filer’s name, address, and telephone number box.
Statements to recipients.
Enter the name, address, and telephone number of the
Taxpayer identification numbers (TINs).
filer of Form 1098-F. Use this same name and address on
Backup withholding.
Form 1096.
Penalties.
Payer's name and address boxes. Enter the name and
Other general topics.
address, in the appropriate boxes, of the person with
respect to whom Form 1098-F is filed.
You can get the general instructions at
IRS.gov/
1099GeneralInstructions
or IRS.gov/Form1098F.
Box 1. Total Amount Required To Be Paid
Continuous-use form and instructions. Form 1098-F
If the amount required to be paid as a result of the court
and these instructions have been converted from annual
order or agreement equals or exceeds the threshold
revision to continuous use. Both the form and instructions
amount, enter the total amount required to be paid. If this
will be updated as needed. For the most recent version,
payer is one of multiple payers/defendants associated
go to IRS.gov/Form1098F.
with the court order or agreement, and the aggregate
amount to be paid by all payers equals or exceeds the
Online fillable Copies B and C. To ease statement
threshold amount, enter the total amount of this payer’s
furnishing requirements, Copies B and C have been made
payment liability (individual or joint and several liability). If
fillable online in a PDF format available at
IRS.gov/
the court order or agreement does not identify the Total
Form1098F. You can complete these copies online for
amount (this box 1), Restitution/remediation amount
furnishing statements to recipients and for retaining in
(box 2), or Compliance amount (box 3) required to be paid
your own files.
as a result of the court order or agreement, and the total
Specific Instructions
amount required to be paid is expected to be equal to or
exceed the threshold amount, enter the threshold amount
in box 1.
Who Must File
A government or governmental entity (including certain
Box 2. Restitution/Remediation Amount
nongovernmental entities that exercise self-regulatory
Enter the amount identified in the court order or
powers) must file a separate Form 1098-F, Fines,
agreement as restitution or remediation.
Penalties, and Other Amounts, with the IRS for each fine,
penalty, or other amount which equals or exceeds an
Box 3. Compliance Amount
amount determined by the Secretary that is paid in
Enter the amount identified in the court order or
relation to any violation of a law or investigation into
agreement as required to be paid to come into compliance
potential violation of a law, pursuant to a court order or
with any law.
agreement (“threshold amount”).
The amount entered in box 1 may or may not
Corrected statements. If there has been a material
equal the amount entered in box 2 or box 3, or the
!
change to the original order or an agreement, a corrected
sum of the amounts entered in box 2 plus box 3.
statement must be filed. You can refer to
IRS.gov/
CAUTION
1099GeneralInstructions, to assist you in filing corrected
statements.
Dec 30, 2019
Cat. No. 71404E
Instructions for Form 1098-F
Department of the Treasury
Internal Revenue Service
(Rev. December 2019)
Fines, Penalties, and Other Amounts
Section references are to the Internal Revenue Code
Statements to be furnished to payers. If you are
unless otherwise noted.
required to file Form 1098-F, you must provide a
statement to the payer. For more information about the
Future Developments
requirement to furnish a statement to the payer, see part
For the latest information about developments related to
M in the current General Instructions for Certain
Form 1098-F and its instructions, such as legislation
Information Returns.
enacted after they were published, go to
IRS.gov/
Truncating payer's TIN on statements to payers.
Form1098F.
Pursuant to Regulations section 301.6109-4, all filers of
Reminders
this form may truncate a payer’s TIN (social security
number (SSN), individual taxpayer identification number
In addition to these specific instructions, you should also
(ITIN), adoption taxpayer identification number (ATIN), or
use the current
General Instructions for Certain
employer identification number (EIN)) on statements to
Information
Returns. Those general instructions include
payers. Truncation is not allowed on any documents the
information about the following topics.
filer files with the IRS. A filer’s TIN may not be truncated
Who must file.
on any form. See part J in the current General Instructions
When and where to file.
for Certain Information Returns.
Electronic reporting.
Corrected and void returns.
Filer’s name, address, and telephone number box.
Statements to recipients.
Enter the name, address, and telephone number of the
Taxpayer identification numbers (TINs).
filer of Form 1098-F. Use this same name and address on
Backup withholding.
Form 1096.
Penalties.
Payer's name and address boxes. Enter the name and
Other general topics.
address, in the appropriate boxes, of the person with
respect to whom Form 1098-F is filed.
You can get the general instructions at
IRS.gov/
1099GeneralInstructions
or IRS.gov/Form1098F.
Box 1. Total Amount Required To Be Paid
Continuous-use form and instructions. Form 1098-F
If the amount required to be paid as a result of the court
and these instructions have been converted from annual
order or agreement equals or exceeds the threshold
revision to continuous use. Both the form and instructions
amount, enter the total amount required to be paid. If this
will be updated as needed. For the most recent version,
payer is one of multiple payers/defendants associated
go to IRS.gov/Form1098F.
with the court order or agreement, and the aggregate
amount to be paid by all payers equals or exceeds the
Online fillable Copies B and C. To ease statement
threshold amount, enter the total amount of this payer’s
furnishing requirements, Copies B and C have been made
payment liability (individual or joint and several liability). If
fillable online in a PDF format available at
IRS.gov/
the court order or agreement does not identify the Total
Form1098F. You can complete these copies online for
amount (this box 1), Restitution/remediation amount
furnishing statements to recipients and for retaining in
(box 2), or Compliance amount (box 3) required to be paid
your own files.
as a result of the court order or agreement, and the total
Specific Instructions
amount required to be paid is expected to be equal to or
exceed the threshold amount, enter the threshold amount
in box 1.
Who Must File
A government or governmental entity (including certain
Box 2. Restitution/Remediation Amount
nongovernmental entities that exercise self-regulatory
Enter the amount identified in the court order or
powers) must file a separate Form 1098-F, Fines,
agreement as restitution or remediation.
Penalties, and Other Amounts, with the IRS for each fine,
penalty, or other amount which equals or exceeds an
Box 3. Compliance Amount
amount determined by the Secretary that is paid in
Enter the amount identified in the court order or
relation to any violation of a law or investigation into
agreement as required to be paid to come into compliance
potential violation of a law, pursuant to a court order or
with any law.
agreement (“threshold amount”).
The amount entered in box 1 may or may not
Corrected statements. If there has been a material
equal the amount entered in box 2 or box 3, or the
!
change to the original order or an agreement, a corrected
sum of the amounts entered in box 2 plus box 3.
statement must be filed. You can refer to
IRS.gov/
CAUTION
1099GeneralInstructions, to assist you in filing corrected
statements.
Dec 30, 2019
Cat. No. 71404E
Box 4. Date of Order/Agreement
D—Property or services required to be acquired,
constructed, or transferred under the court order
Enter the date the order was entered by the court or the
or agreement. Use code D to indicate that the court
agreement was fully executed.
order or agreement requires the payer/defendant to
acquire, construct, or transfer property or services.
Box 5. Jurisdiction
E—Payment amount not identified. Use code E to
Enter the name of the court, or any other entity, that
indicate that the order or agreement identifies a
entered the order or approved the agreement, if
payment (or the cost to provide property or to provide
applicable.
services) as restitution, remediation, or an amount
paid to come into compliance with a law, but does not
Box 6. Case Number
identify some or all of the aggregate amounts the
Enter the case number associated with the court order or
payer must pay (or some or all of the aggregate cost to
agreement, if applicable.
provide property or to provide services).
F—Paid in full as of time of filing. Use code F if, at
Box 7. Name or Description of Matter/Suit/
the time of filing, the payer/defendant has paid the
Agreement
total amount required to be paid as reported in box 1.
Enter a name or description to identify the underlying case
G—No payment received as of time of filing. Use
or matter to which the court order or agreement relates.
code G if, at the time of filing, no payment has been
received from the payer/defendant.
Box 8. Code
H—Deferred prosecution agreement. Use code H if
Enter one or more of the following codes. Read the code
the payer/defendant has entered into a deferred
descriptions carefully to ensure you choose the correct
prosecution agreement relating to the matter/suit/
one(s).
agreement referred to in box 8.
A—Multiple payments. Use code A to indicate if
I—Payment to third party at the direction of a
multiple payments have been or will be made to satisfy
government or governmental entity. Use code I if
the total amount required to be paid as stated in the
the court order or agreement requires the payer/
court order or agreement.
defendant to make a payment to a third party at the
B—Multiple payers/defendants. Use code B to
direction of a government or governmental entity.
indicate that there are multiple payers/defendants
associated with the court order or agreement.
C—Multiple payees. Use code C to indicate that
there are multiple payees associated with the court
order or agreement.
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Instructions for Form 1098-F (Rev. 12-2019)
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