Make 1099-S Filing Part Of Your Real Estate Closing Process
There is a tremendous amount of paperwork associated with real estate sales and you have to be careful not to forget anything. Although Easy HUD helps with the HUD 1 settlement statement, it also can streamline filing your 1099-S forms.
What Is The 1099-S?
Form 1099-S is subtitled Proceeds From Real Estate Transactions so it's pretty self-explanatory. Any time you sell or exchange a property this form must be filed with the IRS and a copy sent to the seller. The form must be filed with the IRS by February 28 of the year following the sale (or March 31 of the following year if e-filed), and a copy must be sent to the seller by January 31 of the following year. You must keep a copy of the form for four years. There are some exceptions and qualifications to this basic rule, but the vast majority of real estate transactions will generate this form. Failure to file will incur fines from the IRS.
Filing Forms Manually
Although the 1099-S is not a difficult form, nobody likes dealing with taxes so many real estate professionals put the filing off until the last minute. In January of every year you will find organizations rushing to fill out the forms on all the transactions they had last year, pulling out stacks of files to find the necessary information.
Filling out the 1099-S by hand is tedious. Again it's not hard, just monotonous. It's also very easy to make simple mistakes while copying information from your records, mistakes that will come back to haunt you later. When you save all your filing for the end of the year, it becomes even more tedious and more prone to mistakes. Luckily there is a better way.
Filing Forms Electronically
Easy HUD real estate closing software includes an optional 1099-S filing module. With a click of the mouse you get a complete 1099-S form that is automatically populated with data from your HUD form. This means no errors and much faster form generation.
What's even better is you can e-file your 1099-S from right inside Easy HUD by using Easysoft Legal Software's 1099-S filing service. For a nominal fee we take care of getting your information to the IRS and sending a copy to the seller. You instantly get a confirmation number so you know the forms have been sent, and Easy HUD keeps a log of submitted documents for future reference. You save time and eliminate the risk of late filing fees. Filing is so simple that it can easily become part of your closing process, so no dreaded stacks of forms to fill out at the end of the year.
But what if this sale or transfer is exempt from 1099-S requirements? No problem. Easy HUD can also print out an exemption form.
Nobody wants to mess with the IRS. With Easy HUD you get HUD settlement statement software plus easy 1099-S filing -- what more do you need?