As the new year starts, title agents everywhere are quickly pulling together their growing task list. Along with the increase in transactions that come with the new year, each agent must add one more to-do to close out last year: 1099 filings.
1099 filings are submitted to the Internal Revenue Service to keep track of the various types of income brought in by businesses, contractors, and individuals throughout the year. That list of documents includes the 1099-MISC (for individual contractors), 1099-DIV (stock investments), 1099-INT (interest payments), and more. But title agents focus on the 1099-S, which specifically refers to any proceeds from a real estate transaction collected by the seller.
There are 3 milestones that need to be reached during the 1099 filing process.
- Obtaining a Transmitter Control Code: If you’re filing your information returns electronically, you will need to apply for a Transmitter Control Code. This process should start as soon as possible - it can take up to 45 days to receive this code, so it’s important to get started on this early. This code will allow you to generate your returns electronically with software like Qualia and submit online to the IRS. Date: As soon as possible
- Submit 1099-S forms to Sellers: Title agents must send all eligible sellers a copy of the 1099-S for the transaction they were party to. This step is crucial - sellers must receive a copy by January 31, 2018. The earlier this is done, the better, to avoid any penalties for not abiding by the deadline. Date: January 31, 2018
- Submit 1099-S forms to IRS: The final step in the filing process is to complete and upload the forms. Once all deficiencies are taken care of and all information is ready to be generated, you can complete your 1099 forms and file the final version with the IRS through their online FIRE (Filing Information Returns Electronically) portal. Date: March 31, 2018
Keeping track of all the information needed for each file, correcting all missing information, and generating individual forms can be cumbersome and tiring process. It can be completed quickly and easily, however, within Qualia. The information entered into each individual file completed within Qualia automatically flows to the right places in the required forms and the system will even generate a deficiency report to alert agents to any missing data that is required. Updates can be made by simply clicking the file number and entering any missing information.
In the fictitious sample file above completed on Qualia, it’s easy to see how the deficiencies for closing the order, entering a last name and a social security number are all identified automatically.
Keeping the above milestones and dates in mind while going through the process can help you stay on pace to complete your 1099s on time.
Want more information?
The Qualia team is here to help. If you are already a Qualia Member, you can click here for a walkthrough guide on completing your 1099s.
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