Form 1099 - S (Real Estate Transactions)
Form 1099-S, Real Estate Transactions, is used to report the sale or exchange of real estate that occured during the calendar year. A different Form 1099-S must be filed for each sale or exchange made.
The Form 1099-S Filing Process
Proceeds from Real Estate Transactions
Important Deadlines for the 2016 Tax Year
Transferor Copies Must Be Mailed
Paper Copies Must Be Filed with the IRS
Electronic Copies Must Be E-Filed with the IRS
WHO NEEDS TO FILE FORM 1099-S?
Form 1099-S is filed by those who oversee the exchange or sale of real estate. This includes reporting transactions that consist in whole (or in part) of selling - or exchanging for money, indebtedness, property, or services - any present or future ownership interest in
- Improved or unimproved land (including air space)
- Inherently permanent residential, commercial, or industrial buildings or structures
- Condominium units, including appurtenant fixtures and common elements (including land)
- Stock in a cooperative housing corporation, or
- Any non-contingent interest in standing timber
WHERE CAN I FILE FORM 1099-S?
You can print and mail paper copies of Form 1099-S to the IRS, however if you have more than 250 forms to file, the IRS requires you e-file. In fact, they encourage everyone to e-file, regardless of the number of forms they have, because e-filing is a simpler and more secure way to file your IRS forms. And the easiest way to e-file is right from your own computer at ExpressTaxFilings!. For more information regarding IRS Form 1099-S visit https://www.irs.gov/pub/irs-pdf/f1099s.pdf
STEPS TO E-FILE FORM 1099-S
- Create or log into your ExpressTaxFilings account
- Start a Form 1099-S return
- Add filer details (Name, Address, Federal ID Number)
- Add transferor details (Name, Address, ID Number)
- Add transaction details (Closing Date, Gross Proceeds, Property Address, Account/Escrow Number, Buyer's Real Estate Tax)
- Review your order and select whether you'd like forms mailed to your transferors
- Add credit card info for the transmittal fee
- E-file Form 1099-S with the IRS
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PENALTIES FOR FAILING TO FILE FORM 1099-S
If you fail to file Form 1099-S by the deadline, your penalty is determined by when you file a complete, correct return. The penalties are as follows:
- $30 per form if you correctly file within 30 days of your deadline; maximum penalty: $250,000/year ($75,000 for small businesses*)
- $60 per form if you correctly file after 30 days but before August 1; maximum penalty: $500,000/year ($200,000 for small businesses)
- $100 per form if you correctly file after August 1 or not at all; maximum penalty: $1,500,000/year ($500,000 for small businesses)
*Small businesses are those with average annual gross receipves of $5 million or less for the 3 most recent tax years (or for the period you were in existence, if fewer than 3 years) ending before the calendar year in which the information returns were due.