E-File Form 1099-LS Online to Report Reportable Life Insurance Sales

The acquirer of an interest in a life insurance contract in a reportable policy sale is generally required to file Form 1099-LS with the IRS and furnish the appropriate statement to the payment recipient.

A reportable policy sale generally occurs when a person acquires an interest in a life insurance contract and has no substantial family, business, or financial relationship with the insured, apart from the interest in the contract. Certain exceptions may apply.

The information generally includes:

• Acquirer information such as name, address, and TIN
• Payment recipient information such as name, address, and TIN
• Life insurance issuer and policy number
• Amount paid to the payment recipient
• Date of the reportable policy sale

Yes. An indirect acquisition may qualify as a reportable policy sale. For example, acquiring an interest in a partnership, trust, or other entity that holds an interest in a life insurance contract may constitute an indirect acquisition of that interest.

Yes. An acquirer may not have to file Form 1099-LS in certain situations, including when:

• The interest was transferred to the acquirer gratuitously.
• The acquirer qualifies for an applicable regulatory exception.
• The acquirer acquires a life insurance contract in a Section 1035 exchange.
• Another acquirer or third-party information reporting contractor reports the transaction under the unified reporting provisions.

There is no general minimum payment threshold for sellers in a reportable policy sale. However, a person other than a seller is generally not considered a payment recipient if that person receives less than $600 in aggregate payments for the reportable policy sale.

For the 2026 tax year, the key Form 1099-LS deadlines are:

If a due date falls on a Saturday, Sunday, or applicable legal holiday, the deadline generally moves to the next business day. Copy C also has transaction-specific timing rules that may require furnishing it earlier than January 15.

The acquirer generally furnishes:

• Copy B to the payment recipient.
• Copy C to the issuer when required.

The Copy C requirement applies to Form 1099-LS filed with respect to the seller when the acquisition was a direct acquisition.

Yes. The payment recipient's TIN may be truncated on Copy B furnished to the payment recipient. However, TINs cannot be truncated on documents filed with the IRS, and the acquirer's TIN may not be truncated on any form.

If you are required to file 10 or more information returns in aggregate, you generally must file them electronically. The 10-return threshold is calculated by aggregating applicable information returns, not by counting Form 1099-LS separately.

For information returns required to be filed in 2027, the general penalties are:

Separate penalties may apply when required statements are not furnished correctly and on time. The intentional-disregard penalty has no maximum.

Yes. Form 1099-LS statements may generally be furnished electronically if the applicable IRS requirements are met, including obtaining the payment recipient's affirmative consent to receive the statement electronically.