What do I do with Form 1099-SB?

[Just-Lisa-Now-]

I haven't seen one of those before!

[George4Tacks · Accepted solution]

https://www.irs.gov/pub/irs-drop/rr-09-13.pdf and in plainer English https://www.lexology.com/library/detail.aspx?g=792bd7c8-2c55-4d71-a0b5-9ae6da7b0287

I believe this new form is just a step toward better enforcement of an old rule. 

On the back of the 1099-SB (Draft is all I could find) is:

Instructions for Seller The issuer of an insurance policy must furnish this form to you upon receiving notice of a transfer of your life insurance contract in a reportable policy sale under section 6050Y or the transfer of your life insurance contract to a foreign person reportable under section 6050Y. Seller's taxpayer identification number (TIN). For your protection, this form may show only the last four digits of your TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)). However, the issuer has reported your complete TIN to the IRS. 

Policy number. Shows the policy number the life insurance company assigned to the life insurance contract transferred. 

Box 1. Shows the issuer's estimate of your investment in the contract (as defined in section 72(e)(6)). 

Box 2. Shows the amount that you would have received upon surrender of the life insurance contract transferred. Future developments. For the latest developments related to Form 1099-SB and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form1099SB

(P.S. The link from the form does not work. This is gonna be a fun year!)

[Terry53029]

Thanks George, you are way underpaid 🙂

[George4Tacks]

I did just get a raise, but you are right.

[George4Tacks]

Sometimes even TurdoTax has a good answer https://ttlc.intuit.com/questions/3925014-my-1099-r-is-a-ssb-from-dfas-how-do-you-want-this-on-the-f...

[Terry53029]

it is a new form, for sellers of investment in life insurance contract

[George4Tacks]

Sorry, read it wrong.  My best guess is if net is less than investment you do nothing. If a gain, I would put on Sch D. I am away from computer now. I will try to do more research when I return.