It’s tax season, and there are some dos and don’ts you should be aware of as you prepare your donors’ 1099-Rs. DO mail a 1099-R to your gift annuitants so it is received by them on or before Monday, February 2, 2015 (January 31 is usually the deadline but we get a few more days because it’s a Saturday this year).
If filing fewer than 250 1099-Rs per organization tax ID number, you may submit Copy A of the paper form or file electronically with the IRS. If filing 250 or more, you must submit 1099-R information to the IRS electronically. Please note the IRS accepts only paper or electronic filing for information returns.
On December 16, 2011, the Internal Revenue Service (IRS) provided new 1099-R Instructions for annuitants that describe how to report 1099-R income on a Federal Income Tax return. Prior to then, these instructions stated that capital gains in Box 3 of the 1099-R should be reported on Form 1040 Schedule D line 13. The new instructions, in contrast, say the following:
