IRS Forms

As many GiftWrap clients typically focus on preparing 1099-R tax forms for their gift annuitants during January, we offer a few tips to help avoid the most common problems when printing onto pre-printed forms.

Data Doesn't Fit Forms Correctly

Simply put, this issue arises because GiftWrap produces the 1099-R information in the exact size required to fit data into the boxes on the pre-printed 1099-R forms. However, many printers and some browsers automatically resize before printing.

Schedule K-1 is a tax form that lists a beneficiary's share of trust income, corporation income, deductions, credits, etc. The trust or corporation also sends a copy of the form to the IRS, so the taxpayer should not attach it to his or her tax return.

Form 8949 is the federal form for reporting sales and other dispositions of capital assets. A gift annuitant whose Form 1099-R indicates a portion of her annuity is capital gain income must enter this capital gain income amount on Form 8949, along with all other sales and dispositions of capital assets.

Form 8283 is a federal informational form filed by a donor with his of her tax return. The form describes all non-cash gifts with a value in excess of $500. For non-cash gifts valued at $5,000 or more that are not publicly traded securities, the form must include an appraisal summary that substantiates the value of the gift.

Form 8282 is a federal informational form filed by a charity. The charity submits the form for each non-cash asset that had a value in excess of $500 at the time of donation and that it sells within two years of donation.

Form 5227 is the federal informational tax return filed by charitable remainder trusts. This form reports the types of income the trust has earned during the year and the distributions it has made to income beneficiaries.

Form 1099-R is the federal form for reporting distributions from pensions, annuities, retirement plans, IRAs, and other various additional sources of income. A charity must send a Form 1099-R to each of its gift annuitants at the end of each year. The 1099-R informs the annuitants of the amount and taxable character of the gift annuity payments that they have received during the tax year.

Form 1041 is the federal income tax return filed by estates and trusts.

The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns. The form contains sections that require taxpayers to disclose their financial income status for the year in order to ascertain whether additional taxes are owed or whether the taxpayer is due for a tax refund. 1040 forms need to be filed with the IRS by April 15.

Also known as the "U.S. individual income tax return" or the "long form".

The IRS form used to report taxable gifts and allocate the lifetime use of one's generation-skipping transfer tax exemption. The official name of Form 709 is United States Gift (and Generation-Skipping Transfer) Tax Return.

Form 709 must be filed on or before April 15 of the year following the year in which a taxable gift or a generation-skipping transfer is made.

For the latest version of Form 709 and its instructions, visit the IRS forms webpage.