We got a cash surrender for an old insurance policy but no 1099R. Is this taxable? And if so how do I enter it?

[MargaretL]

If the cash value payout exceeds your contributions (what you paid in) the excess would be considered taxable and should be reported. At this point, the insurance company would issue a 1099R form. I recommend that you call the policy holder and just double check if there's gain and 1099-R is issued.

If you have no gain on the payout, you don't have to report it.

If you have a loss, they are not allowed, so nothing to report, either.

[mjmckee081]

I have same circumstance, having cashed in an old whole-life policy with a gain,  but insurance company says in a letter that  (1)" because the surrender value of the original policy is less than $5000 and" (2) " the policy was issued prior to August 13, 1982," the IRS does not require the company to report the gain.  The letter does not provide a cite to tax authority and so far the company has not done so on request.  I can't find it either so it must be pretty obscure unless you're an insurance company or insurance tax geek....  Any idea for a citation?

[mpanzer89]

Sounds like the insurer doesnt have a reporting requirement to you and the IRS.  That doesnt obsolve you from tax liability on the gain though.

[mjmckee081]

Dear Mpanzer89 (and others)  The IRS requires the taxpayer to explain the absence of a 1099R on Form 4852.  So my question was intended to find out whether anyone knew why the insurer was not required to provide a 1099R, not whether any gain was taxable.  The insurer eventually provided a citation to an example in a temporary reg, apparently still in force:  Treas. Reg, 35.3405-1T, F-24.  Read it and enjoy.  Pretty Obscure (unless you are an insurance company).