There are only two certainties in life; the other one is taxes—and that’s the subject of this blog. In particular: 1099-S forms. Here, we spotlight important deadlines title & escrow companies must meet to stay compliant with the Internal Revenue Service (IRS).
The basics of the 1099-S
Form 1099-S is used to report to the IRS the gross proceeds from real estate sales, such as homes, land, or commercial buildings. When someone sells real property, the IRS wants an independent record of the sale price so it can confirm whether the seller properly reports any taxable gains. The form identifies the seller, property, date of closing, and amount received.
Title & escrow companies are often the ones required to file the 1099-S form because they sit at the center of the closing. Their obligations include collecting the seller’s taxpayer information, filing the 1099-S with the IRS, delivering a copy to the seller, and keeping supporting records. In effect, title & escrow businesses act as the IRS’s designated reporter to ensure real estate transactions are documented for tax purposes.
Critical 1099-S filing milestones for 2026
Get set up for electronic filing: If you have 10 or more 1099-S returns to file, as many title & escrow companies will, you must file electronically. If you are not currently signed up for electronic filing, it’s imperative to do so immediately. It can take the IRS up to 45 days to process an online application and issue the Transmitter Control Code (TCC) you’ll need for filing digitally. DEADLINE: As soon as possible.
Submit 1099-S forms to sellers: Title & escrow agencies must send all eligible sellers a copy of the 1099-S for the transaction(s) to which they were a party. The earlier this is done, the better. The IRS says the forms can be sent to sellers electronically, if the recipient consents. DEADLINE: Postmarked by February 17, 2026.
Submit 1099-S forms to the IRS: Once all deficiencies are resolved and information is ready, you can complete the 1099-S and file the final version with the IRS. After filing, retain confirmation of submission for your audit records. DEADLINES: Paper filing postmarked by March 2, 2026; electronic filing submitted by March 31, 2026.
Double check deadlines: The IRS lists the above dates as of the publication of this article. These dates are subject to change and should be confirmed on the IRS website before filing. The IRS imposes penalties for each 1099-S that’s not filed correctly or on time. That includes forms title & escrow companies may fail to issue to sellers by the due date. Fines include: $60 (per form) for being up to 30 days late; $130 for being 31 days late through August 1, 2026; $340 for neglecting to file by August 1st or not filing at all; and $680 for intentional disregard.
Filing 1099s with Qualia
The 1099 filing process can feel daunting. Title & escrow agents must keep track of all information needed for each file, correct missing information, and generate individual forms for each 1099-S filing.
Qualia has built-in functionality to make preparing and filing 1099-S forms easier. As orders are opened, the applicable information is automatically populated into a 1099 form, and a deficiency report is generated to alert agents of any missing fields. Using this generated report, agents can efficiently navigate to the applicable files to correct any deficiencies. Qualia supports filing through the IRS’s FIRE system. Looking ahead, for tax year 2026/filing season 2027, Qualia is building a solution that will facilitate filing through the Information Returns Intake System (IRIS), enabling enhanced data validation capabilities as the IRS works to transition digital filing to a modernized platform.
Want to learn about 1099 solutions and other automations built directly into Qualia that streamline workflows? Contact a Qualia Specialist today.
