|
|
The 1099 Reporting Exemption certificate changed
... Safe haven language commonly used to avoid reporting sale or exchange of a principal residence to IRS has changed
|
The IRS prescribed new language for the Certification for no information reporting on the sale or exchange of a principal residence for sales or exchanges occurring after January 22, 2007. This update was introduced in Power Closer 3.2.40. |
On this page:
See also:
The safe-haven language changed
IRS prescribes the language for a seller certification which relieves the settlement agent of liability for failing to report the sale or exchange of a principal residence to IRS on Form 1099-S in certain circumstances.
IRS Revenue Procedure 2007-12 changed the language for the seller certification for sales or exchanges occurring after January 22, 2007.
Power Closer's 1099 Reporting Exemption form
Within the Power Closer program, the "1099 Reporting Exemption" certificate can be found and printed as the last document on Power Closer's print screen.
Considerations
Power Closer users should consider updating to at least Power Closer 3.2.40 to address this issue.
Alternatively, some users may prefer to create a merge form to create this certificate automatically in MS Word or WordPerfect using the Power Closer merge feature.
The settlement agent is subject to liability under various IRS Code sections for failure to report. Therefore Power Closer users who closed transactions using the old language for closings on or after January 22, 2007, might decide to report on IRS Form 1099-S any seller who signed the out-of-date certificate, unless an updated certificate can be obtained prior to January 31 of the year after the closing.
A copy of the certificate must be furnished to each person who signs the certificate. The settlement agent must retain the certificate for four years after the year of the sale or exchange.
See also: