An information return is a tax document used for reporting certain transactions to the IRS (Internal Revenue Service). As per the IRS and related regulations, filing information returns is mandatory for all entities undertaking reportable transactions.
The purpose of filing information returns is to notify the Internal Revenue Service about reportable transactions made during a calendar year. All individuals, partnerships, estates, trusts and corporations making reportable transactions need to file information returns. Apart from filing information returns, these entities also need to provide income recipients with statements. The IRS can be consulted for more information.