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



Payer
Filer
Form 1099-MISC

Form 1099-S

Subcontractors

Proceeds from Real Estate Transactions

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Recipient

Transferor Delivery

February
15

Due Date

Federal Filing

IRS Federal Filing

State e-file
State E-filing

State Filing

Due Date

Not Needed

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Paper Filing

if
>250 files

E-filing

February
28

Due Date

March
31

Due Date

Important Deadlines for the 2016 Tax Year

Feb

15

Wednesday

due date calendar

Transferor Copies Must Be Mailed

Feb

28

Tuesday

due date calendar

Paper Copies Must Be Filed with the IRS

Mar

31

Friday

due date calendar

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

Have a lot of 1099-S Forms to send?

Use our Bulk Upload feature to upload an Excel/CSV file to create multiple 1099-S Forms in minutes! You can download our Excel template or use your own customized template to input your data.

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.