E-File Form 1099-LTC Online for
2023 Tax Year

What Is The IRS Form 1099-LTC?

Insurance companies, governmental units, and viatical settlements that provide long-term care and accelerated death benefits during the tax year are required to report this information on Form 1099-LTC.

Who Is Required To File Form 1099-LTC?

The IRS requires insurance companies, governmental units, and viatical settlements to file 1099-LTC Form with the IRS and distribute copies to the policyholders and the insured individuals that received benefits under either a long-term care insurance contract or accelerated death benefits.

TaxBandits offers a simple solution for e-filing Forms 1099-LTC with the IRS and distributing recipient copies by mail or through secure online access.

Who Is Required To File Form 1096?

Form 1096 is a transmittal summary form, it is used to provide a summary of the information being reported on Form 1099-LTC. The IRS only requires that this form be filed when you are filing paper copies of Form 1099.

When e-filing Form 1099-LTC, you are not required to submit Form 1096. TaxBandits will generate Form 1096 for your records, and it will be available
for download.

When is the deadline to file Form 1099-LTC?

The Form 1099-LTC deadline to distribute recipient copies is January 31, 2024, if you are filing for tax year 2023. If you are paper filing copies of this form with the IRS, they must be submitted by February 28, 2024. Finally, when filing electronically, the deadline to e-file with the IRS is
April 1, 2024.

Businesses that fail to file Form 1099-LTC by the appropriate deadline may become subject to IRS penalties.

What Are the Requirements for Filing Form 1099-LTC?

The following information is required by the IRS to complete Form 1099-LTC.

• Payer’s Name, Address, and TIN
• Policyholder’s Name, Address, and TIN
• Insured’s Name, Address, and TIN
• Gross long-term care benefits paid
• Accelerated death benefits paid
• Ill Type
• Date Certified

How to Fill out form 1099-LTC?

The Form 1099-LTC is comprised of 5 boxes. To fill out 1099-LTC, the following information is required.

General Information

• Box 1:

  Enter the date that the lender acquired the property.

• Box 2:

  Enter the gross accelerated death benefits paid to the policyholder or insured during the year

• Box 3:

  Check the box if the reported benefit paid as shown in box 1 was either Per Diem basis or Reimbursement

• Box 4:

  Check the box if the benefits were paid from a Tax Qualified long-term care insurance contract.

• Box 5:

  Check if the insured/policyholder is “Chronically ill” or “Terminally ill,” along with the date certified.

What Are The Form 1099-LTC Copies?

You are required to complete four copies of Form 1099-LTC

• Copy A must be filed with IRS
• Copy B must be furnished to the policyholder
• Copy C must be furnished to the insured
• Copy D is for the payer record

Note: If the recipient is both policyholder and the insured individual, you only have to furnish Copy B of Form 1099-LTC to the policyholder.

What Are The Most Common Mistakes Made On Forms 1099-LTC?

Two of the most common mistakes made on
Form 1099-LTC are:

• An incorrect or no payer and policyholder TIN number was provided.
• Entering incorrect long-term care benefit amounts

How To Correct Errors On Form 1099-LTC?

If you find any errors on Form 1099-LTC after filing it, the IRS requires that you file a 1099-LTC correction. You will need to enter the updated information on a new IRS Form 1099-LTC and check the box to indicate that the form is being “CORRECTED”. This checkbox can be found at the top of the form. You are also required to furnish the recipient with an updated copy of the Form 1099-LTC.

What are the late filing penalties for Form 1099-LTC?

The IRS may impose the penalties for the following reason.

• Failing to file before the deadline
• Not using the correct copy of the Form 1099-LTC
• Not providing correct information
• Using the wrong tax year
• Filing incorrect or missing TIN

If you fail to file a 1099-LTC tax form before the deadline, the IRS can impose a penalty of $60/ form to $310/form depending on how late you file the Form 1099-LTC with the IRS. Learn more about the Form 1099-LTC penalties.

How to Get an Extension on IRS Form 1099 LTC?

The IRS requires that you file Form 1099-LTC by the deadline to avoid penalties. However, if you need additional time to file, the IRS allows businesses to file an extension for information returns by submitting Form 8809 before the deadline.

If the IRS approves the extension, you will have 30 additional days to complete and submit the forms. This extension doesn’t apply to the deadline to furnish recipient copies, these must be distributed on time.

Note: The 30 days extension is applicable only to the form that is filed with the IRS. No matter the cause, the recipient's copy of the form should be furnished to the recipient before the deadline.