IRS Form 1099-S
Form 1099-S Processing
Power Closer's optional 1099 Annual Report
Program pulls data from your existing Power Closer database to provide fast,
accurate, paperless 1099-S reporting.
already have the Power Closer 1099 Annual Report Program for a prior year
and want to find out if it is still good, see Is
last year's 1099 Annual Report Program still good?
On this page:
Federal law requires settlement agents to provide Sellers
with IRS Form 1099-S and report information to IRS. For complete, accurate and up-to-date
information, start with "Instructions for Form 1099-S" and the
"General Instructions for Forms 1099" from IRS,
or phone 1-800-829-3676.
All paid versions of Power Closer print the Seller's copy of Form 1099-S. Give this form to the seller at closing to avoid potential penalties that grow
over time while efforts are made to locate an unlocatable seller.
The following checklist summarizes the steps for 1099 processing.
by checking the Form 1099-S checkbox for each applicable seller on Power
Closer's Seller Name screen.
Edit 1099's in
Power Closer's 1099 Window as appropriate. Changes made here do not affect the
offer to except sellers from 1099 reporting where appropriate.
Hand out Form
to the Sellers at closing and retain a signed copy. (Sellers move to new
addresses and may give no forwarding information. Power Closer does not
batch print 1099ís for the sellers.)
Delete in Power
Closer any 1099ís for sellers that were excepted from reporting.
Status of the closing from "Ready to Close" to
"Disbursed" so that Power Closer knows the 1099's should be
You may find it
helpful to place a
copy of 1099's in a 1099 Report file to facilitate reporting to IRS early
the following year.
If you own last year's version of the Power Closer
1099 Annual Report
program, check to see if it is still good for
If your firm
does not have a Transmitter Control Code (TCC), apply
If your firm
name, address or Taxpayer ID Number has changed from what you supplied to
IRS in connection with your TCC, you should notify IRS.
Run the Power
Annual Report program. It will provide a Preliminary Report which will
report three kinds of problems: (a) Error, a severe problem that you must
fix such as "Missing Tax ID", (b) Warning, indicating a
potential problem, such as "Not Disbursed?" and (c) Advice,
which is the least severe message. Make any corrections directly in the Power
Closer program and rerun the 1099 Annual Report
The 1099 Annual Report
program creates a data file that
you file electronically by uploading the file at IRS's website. The filing
procedure gets easier each year and is explained in IRS Publication 1220.
You can "Check File Status" on the website's main
menu to verify that your file was received. You
can return to the IRS website after a business day or two, log in and
check the file status to be sure that IRS accepted your file.
For accurate and
up-to-date information about Form 1099-S, start with the Instructions from
that IRS is rejecting paper copies of Form 1099-S produced by Power Closer and
similar forms downloaded from the IRS website.