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IRS Introduces New Form for Reporting Section 529 Distributions
Washington, DC, December 10, 2001 - The Internal Revenue Service has issued a new Form 1099-Q and instructions for reporting distributions from section 529 qualified tuition programs made during 2002. As discussed below, the new form, among other things, requires the reporting of:
- the gross distribution amount,
- the earnings portion of the gross distribution, and
- the basis in the gross distribution.
Copy A of the form must be filed with the IRS by February 28, 2003; if, however, the form is filed electronically, the due date is March 31, 2003. Copy B of the form or an “acceptable substitute statement” must be furnished to the recipient of the distribution by January 31, 2003. The information required by the form includes:
Payer Information. The name and the employer identification number (EIN) of the 529 program must be reported. If the program is established and maintained by a state using the EIN of the state, the name of the state should be entered first, followed by the name of the program on the next line.
Recipient Information. The designated beneficiary should be listed as the recipient of the distribution only if the distribution was made (a) directly to the designated beneficiary or (b) to an eligible educational institution for the benefit of the designated beneficiary. Otherwise, the account owner must be listed as the recipient of the distribution. The social security number of the applicable recipient also must be entered.