Health Coverage Tax Credit (HCTC) Advance Payments

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Instructions for Form 1099-H (2010)

9:54 - 7-JAN-2010

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2010

Department of the Treasury
Internal Revenue Service

Instructions for Form 1099-H
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New
Truncating recipient identification number on paper payee
statements. Notice 2009-93 allows filers of this form to
truncate a recipient’s identification number (social security
number (SSN), individual taxpayer identification number (ITIN),
or adoption taxpayer identification number (ATIN)) on paper
payee statements for tax years 2009 and 2010. See part M in
the 2010 General Instructions for Certain Information Returns.

Reminder
In addition to these specific instructions, you should also use
the 2010 General Instructions for Certain Information Returns
(Forms 1098, 1099, 3921, 3922, 5498, and W-2G). Those
general instructions include information about the following
topics.
• Backup withholding.
• Electronic reporting requirements.
• Penalties.
• Who must file (nominee/middleman).
• When and where to file.
• Taxpayer identification numbers.
• Statements to recipients.
• Corrected and void returns.
• Other general topics.
You can get the general instructions from the IRS website at
www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).

Specific Instructions
File Form 1099-H, Health Coverage Tax Credit (HCTC)
Advance Payments, if you received in the course of your trade
or business any advance payments during the calendar year of
qualified health insurance payments for the benefit of eligible
trade adjustment assistance (TAA), Reemployment TAA, or
Pension Benefit Guaranty Corporation (PBGC) recipients and
their qualifying family members.

Who Must File
Section 6050T requires that if you are a provider of qualified
health insurance coverage (section 35(e)) you must file Forms
1099-H with the IRS reporting the advance payments that you
receive from the Department of the Treasury on behalf of
eligible individuals. You must also furnish a statement to the
eligible recipient.
However, Notice 2004-47, 2004-29 I.R.B. 48, available at
www.irs.gov/irb/2004-29_IRB/ar11.html, provides that the
HCTC Transaction Center, as an administrator of the Health
Coverage Tax Credit (HCTC), will file the required returns and

furnish statements to the recipients unless you elect to file and
furnish information returns and statements on your own.
Contact the HCTC Transaction Center for this purpose by
calling 1-866-628-4282. Unless you notify the HCTC
Transaction Center of your intent to file information returns and
furnish statements, you will be considered to have elected to
have the Transaction Center file Form 1099-H and furnish
statements to recipients in satisfying section 6050T filing
requirements.

Statements to Recipients
If you are required to file Form 1099-H, a statement must be
furnished to the recipient. You or the Transaction Center, if
elected, must furnish a copy of Form 1099-H or an acceptable
substitute statement to each recipient. Also, see part M
in the 2010 General Instructions for Certain Information
Returns.

Penalties
Waiver of penalties. Section 6724(a) authorizes the IRS to
waive any penalties under sections 6721 and 6722 for failure to
comply with the reporting requirements of section 6050T if such
failures resulted from reasonable cause and not willful neglect.
If you elect to allow the HCTC Transaction Center to file and
furnish Forms 1099-H, the IRS will not assess the penalties
imposed by sections 6721 and 6722 regarding the reporting of
advance payments made to you. If you do not elect to allow the
HCTC Transaction Center to file and furnish Forms 1099-H, the
general rules for seeking a penalty waiver under section
6724(a) apply. See Regulations section 301.6724-1.
For more information on penalties, see part O in the 2010
General Instructions for Certain Information Returns.

Box 1. Amount of HCTC Advance Payments
Enter the total amount of advance payments of health
insurance premiums received on behalf of the recipient for the
period January 1, 2010, through December 31, 2010. The
amount received in 2010 cannot exceed 80% of the total health
insurance premium for the individual.

Box 2. No. of Months for which HCTC Payments
Received
Enter the number of months for which payments were received
on behalf of the recipient. This number cannot be more than 12.

Boxes 3-14. Amount of Advance Payment(s)
Included in Box 1
Enter the amount of the advance payment received for each
month in the applicable box. You may receive these payments
prior to the month for which they are paid. Be sure to enter the
amounts in the correct box.

Cat. No. 35080G