E-File Form 1099-LTC Online

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.

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.

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.

There are a few different deadlines for Form 1099-LTC. The deadline to distribute recipient copies is January 31, 2025. The deadline to file paper copies with the IRS is February 28, 2025 and the deadline to file electronically Form 1099-LTC with the IRS is March 31, 2025.

Note: If the deadline falls over a weekend or on a federal holiday, the deadline automatically switches to the next business day.

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
• The insured’s name, address, and TIN
• Gross long-term care benefits paid
• Accelerated death benefits paid
• Type of illness (chronical or terminal)
• Date Certified

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

• 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.

Form 1099-LTC has three copies, each serving different purposes:

• Copy A must be filed with the IRS
• Copy B must be furnished to the policyholder
• Copy C must be furnished to the insured individual

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

The most common mistakes made on Form 1099-LTC are:

• An incorrect or missing TIN number of the payer and policyholder is provided.
• Entering incorrect long-term care benefit amounts.

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.

If you fail to file and furnish Form 1099-LTC within the specified deadlines, the IRS will impose penalties ranging between $60 and $660, depending on your business size and the delayed period.

To learn more about the 1099-LTC penalties, click here.

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.