Form 1099-S

What is Tax Form 1099-S?

Tax Form 1099-S is a document used to report proceeds from the sale or exchange of real estate. This form is typically issued by title companies, real estate agents, or other entities involved in the sale of real estate when the transaction results in a reportable gain. If you sold or exchanged real estate during the year and received gross proceeds of $600 or more, you should receive this form. It helps the IRS track real estate transactions and ensures that any capital gains or losses are properly reported on your tax return.

Who Needs to File Tax Form 1099-S?

If you’re a title company, real estate agent, or other entity involved in the sale of real estate, you must file Form 1099-S if you meet any of the following criteria:

• You facilitated a sale or exchange of real estate for $600 or more.
• You were involved in a transaction where there were gross proceeds from the sale, even if no gain was realized.
• You were the settlement agent in a real estate transaction.

Financial institutions, banks, credit unions, and investment firms are the most common filers of Form 1099-S.

When to File Tax Form 1099-S in 2025?

Here are the deadlines for filing Form 1099-S in 2025:

• January 31, 2025: Provide a copy of Form 1099-S to the recipient (the seller).
• February 28, 2025: File the form with the IRS if submitting by mail.
• March 31, 2025: File the form with the IRS if submitting electronically.
• As soon as possible if corrections are needed: If errors are found, submit a corrected form promptly to avoid penalties.

Meeting these deadlines helps ensure compliance with IRS regulations and accurate tax reporting for real estate transactions.

What Are the Penalties for Filing Tax Form 1099-S Late?

If you fail to file Form 1099-S on time in 2025, the IRS may impose penalties based on how late you are. Here’s a breakdown:

• $60 per form: If filed up to 30 days late (by March 31, 2025).
• $120 per form: If filed more than 30 days late but before August 1, 2025.
• $310 per form: If filed after August 1, 2025, or not filed at all.
• Higher penalties for intentional disregard: If you deliberately fail to file the form, the penalty is $630 or more per form, with no maximum limit.

Filing on time and correcting errors quickly can help avoid unnecessary fines.

How to File Tax Form 1099-S Online?

Filing Form 1099-S online is quick and efficient. Here’s how:

1. Choose an IRS-authorized e-file provider:
   • Visit the IRS website for approved e-file services or use trusted tax software such as TurboTax, TaxAct, or other platforms that support real estate transactions.
2. Create an account or log in:
   • Register with your chosen e-filing provider and set up your profile, including your Employer Identification Number (EIN) or Taxpayer Identification Number (TIN).
3. Enter payment details:
   • Fill in the recipient’s name, address, TIN, and the gross proceeds from the sale or exchange of real estate, along with any other relevant information, such as the date of the transaction.
4. Verify the information:
   • Double-check all transaction details to avoid errors, especially the recipient’s information, sale amounts, and property details. Ensure that all required fields are filled accurately.
5. Submit the form electronically:
   • Once all details are verified, submit the form through the e-file platform. You will receive a confirmation once the IRS accepts the form.
6. Send a copy to the recipient:
   • Provide a copy of Form 1099-S to the seller or recipient by January 31, 2025 to meet IRS requirements.

Filing online streamlines the process, reduces the risk of errors, and gives you instant confirmation from the IRS.

Tips for Filing Tax Form 1099-S

Here are some useful tips to ensure you file Form 1099-S correctly:

1. Determine if you need to file:
   • File a 1099-S if you facilitated the sale or exchange of real estate with gross proceeds of $600 or more.
2. Collect accurate information early:
   • Ensure you have the correct recipient’s name, address, and TIN. It’s essential to verify the details related to the property transaction to ensure accuracy.
3. Meet the deadlines:
   • Provide copies to recipients by January 31, 2025, and file with the IRS by February 28, 2025 (if mailed) or March 31, 2025 (if e-filed).
4. Double-check for errors:
   • Verify all transaction details, including the recipient’s information, sale amounts, and the property details, to avoid errors and potential penalties.
5. Use e-filing for efficiency:
   • Filing electronically minimizes errors, speeds up the process, and provides instant confirmation from the IRS.
6. Keep records:
   • Save copies of filed forms, contracts, and transaction details for at least three years.
7. Fix mistakes promptly:
   • If you notice any errors, submit a corrected form (Corrected Form 1099-S) as soon as possible to avoid penalties.
8. Consult a tax professional if needed:
   • If you’re unsure about any part of the process, seek assistance from a tax professional to ensure compliance with IRS regulations.

Following these tips helps ensure compliance and minimizes the risk of penalties for incorrect filings!

1099-S Form FAQ