For Payers

• 1). Complete the left-hand side of the form with your information and the recipient's information. You will need to include federal identification numbers as well as address information for both parties.
  
  
• 2). Enter the amounts of funds paid to the recipient and federal taxes withheld in boxes 1 through 4. Use boxes 10 through 15 to report state and local distributions and taxes withheld.
  
  
• 3). Choose the appropriate distribution code to enter in box 7. It is very important to use the correct code because this is how the Internal Revenue Service knows how to tax the distribution. For a complete list of distribution codes, see the instructions for recipient included on form 1099-R.
  
  
• 4). File copy A of the form with the IRS and furnish copies B and C to the recipient.
  
  

For Recipients

• 1). Use the information reported on form 1099-R to complete your federal, state and local tax returns for tax year 2007. Generally, retirement benefits received as income are to be included on line 16 of Form 1040. If you had any federal tax withheld from your retirement benefits, include this on line 61 of page 2, of form 1040. Each state and locality has its own filing requirements; for additional information on reporting retirement benefits on these returns, refer to your state and local government tax agencies.
  
  
• 2). Attach a copy of your form 1099-R to your state and federal tax returns. File the returns with the appropriate government agencies.
  
  
• 3). Keep a copy of your form 1099-R with your tax records for at least three years after filing the return.