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IRS Form 1099-S

... Form 1099-S Processing
 

Power Closer's 1099 Annual Report Program

Power Closer's optional 1099 Annual Report Program pulls data from your existing Power Closer database to provide fast, accurate, paperless 1099-S reporting.

If you 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?
 

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1099 Orientation

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.

1099 Seller's Copy

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.

1099 Checklist

The following checklist summarizes the steps for 1099 processing.

  • At or prior to closing:

  1. Create 1099-S's by checking the Form 1099-S checkbox for each applicable seller on Power Closer's Seller Name screen.

  2. Edit 1099's in Power Closer's 1099 Window as appropriate. Changes made here do not affect the HUD-1. 

  3. Optionally offer to except sellers from 1099 reporting where appropriate. 

  4. Hand out Form 1099-S's 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.)

  • After the closing:

  1. Delete in Power Closer any 1099ís for sellers that were excepted from reporting.

  2. Change the Status of the closing from "Ready to Close" to "Disbursed" so that Power Closer knows the 1099's should be reported.

  3. 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.

  1. If you own last year's version of the Power Closer 1099 Annual Report program, check to see if it is still good for this year.

  2. If your firm does not have a Transmitter Control Code (TCC), apply for one. 

  3. 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

  4. Run the Power Closer 1099 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 program.

  5. 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.

  6. 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 IRS. Note that IRS is rejecting paper copies of Form 1099-S produced by Power Closer and similar forms downloaded from the IRS website. 
 

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