IRS regulations require the settlement agent to report all sales of a U.S. Real Property interest to the IRS using form 1099–S Proceeds from Real Estate Transactions. 1099–S reporting is nothing new, yet the Company has seen an increase in the amount of fines incurred for improper filing.

Please be aware that a fine for each incorrect 1099–S form is $250 per occurrence. These fines can quickly add up.

In an effort to reduce the errors look for this feature each month with tips on properly reporting sales in order to avoid penalties. The most common errors are:

• Failing to obtain a completed, signed and dated 1099–S Solicitation
• Failing to obtain and enter into the system the forwarding address of the seller
• Failing to obtain the seller's TIN
• Typographical errors
• Failing to indicate in your production system when a transaction is exempt
• Failing to report the sale all together
• Not ensuring the taxpayer and taxpayer identification number match
• 1099–S Forms returned undeliverable
• Seller never receives their 1099–S
• Not processing corrections properly