What is Form 1099-S?

Form 1099-S, Proceeds From Real Estate Transactions, is an IRS information return used to report the sale or exchange of real estate. Form 1099-S is used to report the sales of improved or unimproved lands (including air space), permanent structures (including residential, industrial, or commercial building), condominium units, co-op housing corporation stock, and any non-contingent interest in standing timber. Form 1099-S must be filed or e-filed with the IRS each year to report the real estate transactions managed by the filer during the previous year.

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Who Needs to File Form 1099-S

Form 1099-S is reported by those who oversee the sale or exchange of real estate. Generally, transactions that need to be reported on Form 1099-S consist in whole or in part of the sale or exchange of any present or

Future Ownership Interest of any of the following:

  • Improved or unimproved land (this includes air space).
  • Structures that are considered inherently permanent (residential, commercial, or industrial buildings).
  • Condominium units (including appurtenant fixtures and common elements, like land).
  • Cooperative housing corporation stock.
  • Non-contingent interest in standing timber.

The following transactions aren’t necessarily reportable, although you may use Form 1099-S to report them:

  • Certain sales of residences valued at $250,000 or less
  • Any transaction in which the transferor is a corporation, governmental unit, or exempt volume transferor
  • Any transaction that is not a sale or exchange
  • Transfers of debt secured property
  • De minimis transfers for less than $600

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Form 1099-S Deadlines

Form 1099-S needs to be filed with the IRS and sent to the transferor the year following the year the transaction took place.

The deadlines are as follows:

  • Transferor copies must be mailed out by February 15 and
  • Paper copies must be filed with the IRS by February 28/29 or
  • Electronic copies must be e-filed with the IRS by March 31.

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How to E-file Form 1099-S

Form 1099-S can be filed one of two ways:

  • Paper Filing
  • E-filing

Form 1099-S Paper Filing

Paper filing Form 1099-S involves submitting your forms by mail at an IRS office. Since these IRS offices are usually only open during peak filing times, you may wait in a long line before even speaking with a representative. Even after all that, there's no guarantee your forms will be filed without errors.

Form 1099-S E-filing

E-filing is the online method of filing IRS Form 1099-S. E-filing is secure and generally only takes a few minutes to complete. In fact, the IRS recommends e-filing and even requires it for returns with 250 or more forms. As an IRS-authorized e-file provider, ExpressIRSForms can help you easily and quickly e-file Form 1099-S with the IRS and provide you with PDF copies to print and mail as well.

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Information Required to File Form 1099-S

The following information is needed to report Form 1099-S to the IRS:

  • Filer Details: Name, Address, Telephone Number, Federal ID Number
  • Transferor Details: Name, Address, ID Number, Account/Escrow Number
  • Property Details: Closing Date, Gross Proceeds, Address, Real Estate Tax

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IRS Form 1099-S Corrections

If your Form 1099-S is rejected or you notice an error on an already filed 1099-S Form, you'll need to correct it as soon as possible. Corrections can be made electronically or on paper. If the error is part of the transferor's data, a corrected copy of Form 1099-S will need to be sent to them as well.

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Form 1099-S Filing Penalties

Failing to file Form 1099-S correctly and on time without reasonable cause can lead to fines.

You can also receive an IRS fine if you:

  • Fail to file paper forms that are machine-readable
  • Paper file when you're required to e-file
  • Don't include all necessary information
  • Include incorrect information
  • Don't report a Taxpayer Identification Number (TIN)
  • Report an incorrect TIN

The fine you receive is based on when you correct and file a completed Form 1099-S.

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Form 1099-S Features

  • Multi-Form Upload
  • Print Center and Postal Delivery
  • Free Form 1099 Corrections
  • Free Form W-9 E-signing

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Extension to File Form 1099-S

If you think you're at risk for missing the Form 1099-S deadline, you can get an extension by filing Form 8809. When filed before your original deadline, Form 8809 provides an automatic 30-day extension for your time to submit Form 1099-S to the IRS. This form does not grant extension of time to furnish your transferor copies, but it can be filed quickly and easily through ExpressIRSForms!

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