Document
Agency Collection Activities; Burden Related to Information Reporting for Certain Life Insurance Contract Transactions
The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to take this oppo...
SUPPLEMENTARY INFORMATION:
The IRS is currently seeking comments concerning the following information collection tools, reporting, and record-keeping requirements:
Title:
Information Reporting for Certain Life Insurance Contract Transactions.
OMB Number:
1545-2281.
Form Number:
Forms 1099-LS and 1099-SB.
Abstract:
The collection covers the information reporting requirements for certain life insurance contracts under IRC 6050Y, which was added by the Tax Cuts and Jobs Act (TCJA). Form 1099-LS 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. Form 1099-SB is used by the issuer of a life insurance contract (also known as a life insurance policy) to report the seller's investment in the contract and surrender amount with respect to an interest in a life insurance contract transferred in a “reportable policy sale” or transferred to a foreign person.
Current Actions:
There is no change to the burden previously approved.
Type of Review:
Extension of a currently approved collection.
Affected Public:
Businesses or other for-profits.
Estimated Number of Responses:
13,100.
Estimated Time per Respondent:
7 min.
Estimated Total Annual Burden Hours:
1,572.
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Request for Comments:
Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
Dated: October 4, 2024.
Jason M. Schoonmaker,
Tax Analyst.