Health Coverage Tax Credit (HCTC) Advance Payments

2019

Instructions for Form 1099-H

Department of the Treasury
Internal Revenue Service

Health Coverage Tax Credit (HCTC) Advance Payments
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 1099-H and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1099H.

Reminders
General instructions. In addition to these specific
instructions, you should also use the 2019 General
Instructions for Certain Information Returns. Those
general instructions include information about the
following topics.
Backup withholding.
Electronic reporting.
Penalties.
Who must file.
When and where to file.
Taxpayer identification numbers (TINs).
Statements to recipients.
Corrected and void returns.
Other general topics.
You can get the general instructions from General
Instructions for Certain Information Returns at IRS.gov/
1099GeneralInstructions or go to IRS.gov/Form1099H.
Online fillable form. Due to the very low volume of
paper Forms 1099-H received and processed by the IRS
each year, this form has been converted to an online
fillable format. You may fill out the form, found online at
IRS.gov/Form1099H, and send Copy B to the recipient.
For filing with the IRS, follow your usual procedures for
filing electronically if you are filing 250 or more forms. If
you are filing this form on paper due to a low volume of
recipients, for this form only, you may send in the
black-and-white Copy A with a Form 1096 that you print
from the IRS website.

Specific Instructions

File Form 1099-H if you received any advance payments
during the calendar year of qualified health insurance
payments for the benefit of recipients of eligible trade
adjustment assistance (TAA), Alternative TAA (ATAA),
Reemployment TAA (RTAA); or Pension Benefit Guaranty
Corporation (PBGC) payees, and their qualifying family
members. These individuals are referred to in these
instructions as recipients.

Who Must File

Section 6050T requires providers of qualified health
insurance coverage (defined in section 35(e)) that receive
advance payments of the HCTC from the Department of
the Treasury on behalf of eligible recipients pursuant to

Sep 06, 2018

section 7527 to file Forms 1099-H to report those advance
payments and to furnish a statement reporting that
information to the recipient.
However, Notice 2004-47, 2004-29 I.R.B. 48, available
at IRS.gov/irb/2004-29_IRB, provides that the IRS HCTC
Program (formerly the IRS HCTC Transaction Center), as
an administrator of the 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 Program for this purpose by
emailing the HCTC Program at
wi.hctc.stakehldr.en@irs.gov. Unless you notify the HCTC
Program of your intent to file information returns and
furnish statements, you will be considered to have elected
to have the HCTC Program file Form 1099-H and furnish
statements to recipients in satisfying section 6050T filing
and furnishing requirements.

How To File

For filing with the IRS, see part E in the 2019 General
Instructions for Certain Information Returns and Pub.
1220.

Statements to Recipients

If you are required to file Form 1099-H, a statement must
be furnished to the recipient. The HCTC Program will
furnish a copy of Form 1099-H or an acceptable substitute
statement to each recipient on your behalf, unless you
elect to file Form 1099-H and furnish the copy or
substitute statement yourself. If you make this election,
you may fill out the form, found online at IRS.gov/
Form1099H, and send Copy B to the recipient. See part J
in the 2019 General Instructions for Certain Information
Returns.
Truncating recipient‘s TIN on recipient statements.
Pursuant to Treasury Regulations section 301.6109-4, all
filers of this form may truncate a recipient’s TIN (social
security number (SSN), individual taxpayer identification
number (ITIN), or adoption taxpayer identification number
(ATIN)) on recipient statements. Truncation is not allowed
on any documents the filer files with the IRS. A filer’s TIN
may not be truncated on any form. See part J in the 2019
General Instructions for Certain Information Returns.
Expired ITINs may continue to be used for
information return purposes regardless of whether
CAUTION they have expired for individual income tax return
filing purposes. See part J in the 2019 General
Instructions for Certain Information Returns.

!

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. The HCTC Program will

Cat. No. 35080G

furnish a copy of Form 1099-H or an acceptable substitute
statement to each recipient on your behalf, unless you
elect to file Form 1099-H and furnish the copy or
substitute statement yourself. The IRS will not assert the
penalties imposed by sections 6721 and 6722 for
information returns and statements required to be filed
and furnished under section 6050T against you if you
allow the HCTC Program to file and furnish Forms
1099-H. If you elect not to allow the HCTC Program 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 2019 General Instructions for
Certain Information Returns.

the period January 1, 2019, through December 31, 2019.
The amount received for 2019 cannot exceed 72.5% of
the total health insurance premium for the individual.

Box 2—No. of Mos. HCTC Payments Received

Enter the number of months payments were received on
behalf of the recipient. This number cannot be more than
12.

Boxes 3 Through 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.

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

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Instructions for Form 1099-H (2019)