Should I file a 1099-S for my real estate transactions?

[Deirdre Taylor]

Today is the 1st day of the last quarter of 2011, and most tax accountants are preparing for year-end.  One tax question that I am frequently asked is:

 

"Am I required to file 1099-S for my real estate transactions this year?   The answer is generally, "yes".  Since there are numerous professionals involved in one closing; however, the more important question should be who is responsible for preparing and reporting the 1099-S.

The IRS code states that the real estate broker or other person responsible for the closing, is required to report the sale of property to the IRS using Form 1099-S.  If there is a settlement statement used, then the responsible party is the settlement agent.

If your forms 1099-S are not filed timely at year-end, your company will be subject to a penalty of $50 per form.  The IRS is diligently working hard to close the tax gap, and they are putting a greater emphasis on collecting penalties and interest on information reporting violations.

 

If you need assistance with your information reporting at year-end, please contact me now!  I can be reached at  [e-mail].

 

Thank you!!