- February 17, 1988
- All Issuing Offices
- 1099-B, Real Estate Reporting
Our office has received several calls concerning the effect of errors in the reporting on real estate transactions subject to 1099-B filings.
Among the most common complaints by the customer are that (1) separate 1099-B reporting was made for the husband and for the wife and (2) in sales by multiple sellers, the sellers were not requested to allocate the sales price. Pursuant to the regulations issued in April 1987, reporting is generally required only for one spouse where both spouses are conveying the property. In addition, pursuant to these regulations the real estate broker (generally the closing title company) must request that multiple sellers allocate the sales price.
In order to correct an error or omission such as this, it is possible on the magnetic media reporting to mark either "corrected" or "voided" on that particular tape. For example, it would be possible to "void" or entirely erase the report on one spouse. If you have already filed the magnetic media reporting with the Internal Revenue Service, then it is possible to send a subsequent diskette with those voided or corrected items only and to inform the parties of the correction. Failure to correct the matter within thirty days of a request can result in a penalty of up to $10.00 per report.
You may secure a copy of the 1099-B (now 1099-S) reporting instructions from the Internal Revenue Service which deals in more detail with the issue of correction of reporting.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- 5.16 Escrow Closings
- Exceptions Manual: