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E-File IRS Form 1099-SB Online with Tax2efile

Tax2efile, your trusted platform for seamlessly e-filing IRS Form 1099-SB. Our user-friendly interface simplifies the process of electronically filing your 1099-SB forms. Say goodbye to the paperwork hassle and hello to accurate and quick submissions. With Tax2efile, you're in capable hands for your tax filing needs.

What is a 1099-SB Form?

Form 1099-SB is an information tax return used to report the vendor's investment in the contract/surrender amount related to interest in a life insurance agreement. If the filer is the issuer of a life insurance contract and they receive a declaration from an acquirer in a reportable policy sale provided under section 6050Y (a) or the filer receives notice of a transfer of the life insurance contract to a foreign person.

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. 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 maybe a reportable policy sale.

How to File IRS Form 1099-SB?

IRS 1099-SB Tax Form

Here are the boxes on the form that may show amounts or other information. Boxes for the policies information:

  • Box 1: Investment in Contract
  • Box 2: Surrender Amount

The contact information provided will give you direct access to a person who can answer questions about this tax return. If blank, the contact information is the same as the ISSUER.

Now that you know about the IRS 1099-SB Form, you can work with a great tax advisor or preparer to get the most accurate tax reporting and get the most out of your return.

Required Information to File Form 1099-SB

  • Taxpayer's (ISSUER/ SELLER) information
  • Policy number
  • Policy investment information

If the filer is required to file Form 1099-SB, they must furnish a statement or acceptable substitute to the seller or vendor, such as Copy B of Form 1099-SB.

Watch our step-by-step video on How to E-File IRS Form 1099-SB with Tax2efile

Who Must File Form 1099-SB?

1099-SB can be used by issuers of the life insurance contract when either of the following occurs:

  • You receive a declaration from an acquirer regarding a policy sale such as a Form 1099-LS , reportable transfer of life insurance, or interest in a reportable policy sale.
  • You receive notice of a transfer of life insurance contract to an overseas individual.

The insurance carrier is required to provide a tax return to the seller and the IRS reporting the seller’s investment in the contract and surrender value of the contract as of the date of the transaction. There are three copies of the forms: one copy for the IRS, one for the Seller, and one for the Issuer.

When is the Form 1099-SB Deadline?

Filing Type Deadline
Recipient copy January 31st
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file on the next business day.

Still have questions?

This form 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

Any issuer of a life insurance contract.

Required details needed to file Form 1099-SB may include issuers and sellers Information such as TINs, Addresses, Surrender Amount and investment amounts.

Yes, Tax2efile offers a bulk upload feature that allows the user to upload all the payers to an excel sheet for a faster process.

Tax2efile allows you to correct a mistake to the payers’ information for TINs, Names & amounts.

Form 1099-SB is used to report certain payments received by a broker or barter exchange as part of a barter exchange transaction. These payments may include goods, services, or other non-monetary compensation received in exchange for goods or services provided.

Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.

Using our fast electronic service, you can complete your filing within 5 minutes.

To file Form 1099-SB for a single return the filing fee is $3.25.

The IRS requires Form 1099-SB to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31.

Failure to file the 1099 form by the deadline may result in IRS penalties. The penalty can be from $60 per 1099 Form, the maximum penalty can be up to $630,500. If you submit Form more than 31 days to before August 1, the penalty increases to $120 per 1099 Form and maximum penalty up to $1,891,500. If you file after August 1, the penalty can be from $310 per 1099 Form and maximum penalty up to $3,783,000. Additionally, there are penalties for failure to furnish the payee statement.

Documentation required to support transactions reported on Form 1099-SB may include invoices, contracts, agreements, or other relevant records detailing the terms of the barter exchange transactions. Tax2efile offers guidance on the types of documentation that should be retained and provided as backup for the reported transactions.

If you have more questions, please refer to our FAQ page.

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