TaxBandits Knowledge Base

What is Form 1098-F?

Form 1098-F, Fines, Penalties, and Other Amounts, is used to report specific payments made by taxpayers to government or governmental entities as part of a court order, settlement agreement, or judgment involving actual or potential violations of laws. 

The form ensures compliance with the IRS's rules concerning the non-deductibility of fines and penalties while providing detailed information that allows certain payments - such as restitution, remediation, or costs to comply with the law to be considered for potential tax deductions under strict conditions.