Page 4 - Seller Resource Guide

General Guide to

IRS Reporting

Requirements

Sellers of real property will WHO IS REQUIRED TO REPORT TO THE I.R.S.?

have certain information Sellers of real property, under guidelines established by the
I.R.S.., are required to have the dollar amount of their gross
regarding the sale reported to proceeds from the sale reported on a Form 1099-S. When a

the Internal Revenue Service. settlement agent is used, the I.R.S.. makes the settlement
agent responsible for the delivery of the seller’s gross
This required reporting of proceeds information on the Form 1099-S.

information is a consequence The settlement agent generally will be the escrow agent or

of the Tax Reform Act of 1986; title company; however, it may be an attorney, real estate
it is intended to encourage broker or other person providing settlement services.

taxpayer compliance with the WHAT IS AN I.R.S. FORM 1099S; AND WHAT WILL BE REPORTED?

Internal Revenue Code and The Form 1099-S is the reporting form adopted by the
I.R.S. for submitting the seller’s gross proceeds information
aid in audit and enforcement required by law.

efforts by the I.R.S. The information is transferred onto magnetic media by the

settlement agent who will make the required report to the I.R.S.
The settlement agent is also required to keep a master copy of
all transactions reported for a length of four years from the date
of transaction.

09/2021 | © 2021 Old Republic Title | OR2343-DI | Old Republic Title strongly recommends that consumers obtain guidance and
advice from an attorney specializing in Tax and/or from qualified tax professionals to get more detailed, and current, information
on tax reporting requirements as to any matters directly affecting them.