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IRS Form 1098-F, Fines, Penalties and Other Amounts
IRS Form 1098-F, Fines, Penalties and Other Amounts
Frequently Asked Questions
What is Form 1098-F?
Form 1098-F, Fines, Penalties and Other Amounts, is a form created by the Internal Revenue Service (IRS). Form 1098-F is not an assessment.
Under federal law, state government agencies, including the Texas Comptroller of Public Accounts, must file a Form 1098-F with the IRS to report each final determination assessing penalties of $50,000 or more. The Comptroller’s office also issues a copy of Form 1098-F to the person required to pay the penalties.
What law requires the Comptroller's office to issue Form 1098-F?
Internal Revenue Code section 6050X and Treasury Regulation section 1.6050X-1.
Congress enacted the reporting requirements found in Internal Revenue Code section 6050X in 2017 as part of the Tax Cuts and Jobs Act, Pub. L. 115-97, title I, Sec. 13306(b)(1) (Dec. 22, 2017). The reporting requirements took effect for penalty assessments due on or after Jan. 1, 2022.
Why did I receive Form 1098-F?
When the Comptroller’s office files a Form 1098-F with the IRS, the Comptroller’s office also sends a copy of the form to the person required to pay the penalty. If you have received a copy of Form 1098-F, it is because the Comptroller’s office reported to the IRS a final determination assessing a tax penalty of $50,0000 or more.
What is a final determination?
An assessment of tax by the Comptroller's office that cannot be appealed administratively. Final determinations include:
- A deficiency determination, if the taxpayer does not timely request a hearing.
- A deficiency determination is a statement the Comptroller’s office issues to at the conclusion of an audit stating the amount of tax, penalty and interest due to the state. It is also called a Notice of Tax Due. Unless the taxpayer requests a hearing, a deficiency determination becomes final 30 days after the date of the notice.
- A jeopardy determination, if the taxpayer does not timely request a hearing.
- A jeopardy determination is a bill the Comptroller’s office issues to a taxpayer for tax, penalty and interest that becomes final 20 days after the date of the notice.
- A final Comptroller’s Decision after an administrative hearing.
- A determination is considered final even if the taxpayer files suit in District Court.
What do I do with Form 1098-F?
Federal law requires the Comptroller's office to file Form 1098-F with the IRS and furnish a copy of the form to the person required to pay the penalty. The Comptroller's office does not administer the federal income tax and cannot answer questions about filing your own federal income tax return.
Form 1098-F is not a tax assessment. You are not required to respond to the Comptroller’s office.
My penalty assessment was waived. Will the Comptroller’s office issue a new Form 1098-F?
The Comptroller's office will not issue an amended Form 1098-F if the Comptroller's office waives your penalty after the final determination is issued.
How can I get a copy of my final determination?
Submit an open records request. For more information about open records requests, please visit our Open Records webpage.
How was the total amount required to be paid calculated?
The Comptroller’s office calculated the amount shown in Box 1 of Form 1098-F, the total amount required to be paid, on December 31, 2022. The amount shown is the total tax assessment, plus penalty and interest. The amount of interest is the total accrued through December 31, 2022. Interest will continue to accrue on any unpaid tax you owe.