1099 S form is one type of 1099 form that the IRS classifies as an information return. It is a tax document businesses are required to file to report certain business transactions to the Internal Revenue Service (IRS). Any person, including a corporation, partnership, individual, estate, and trust, who make reportable transactions during the calendar year, must file information returns to report those transactions to the IRS. Persons required to file Information Returns to the IRS must also furnish statements to the recipients of the income. Filers who have 250 or more must file these returns electronically.
The IRS has electronic filing guidelines that must be followed. First-time filers must register with the IRS, obtaining a Transmitter Control Code (TCC). Register to file 1099 forms electronically by submitting Form 4419. The IRS requires submission files to conform to a specific electronic filing format. For more information regarding the filing format see IRS Pub. 1220.
The simplest solution to 1099 S electronic filing is 1099 S filing software. This type of software permits the filer to enter manually or by importing their name, address and federal identification number as well as the transferor's name, address identification number (social security number) and account / escrow number. The 1099 tax software user will input
Box 1. Date of Closing. Enter the closing date.
Box 2. Gross Proceeds. Enter the gross proceeds from the sale or exchange of real estate.
Box 3. Address or Legal Description (Including City, State, and ZIP Code). Enter the address of the property, including the city, state, and ZIP code.
Box 4. Check Here if the Transferor Received or Will Receive Property or Services as Part of the Consideration. If the transferor received or will receive property (other than cash and consideration treated as cash in computing gross proceeds) or services as part of the consideration for the property, enter an "X" in the checkbox in box 4.
Box 5. Buyer's Part of Real Estate Tax. For a real estate transaction involving a residence, enter the real estate tax paid in advance that is allocated to the buyer.
Once data entry or importing has been completed use 1099 S filing software to produce an electronic submission file. Click e-filing. Simply fill in the transmitter information screen including the transmitter name, TIN, EIN and contact information. From this screen you will save the submission file, which will eventually be uploaded to the IRS FIRE website.
Proceed to the FIRE (Filing Information Returns Electronically) website. Create a new account if you do not already have an account. Log in using your user ID and password. You will continue through the screens answering the questions until you get to the end of the process where you will be asked to upload your file. You will have a choice to upload multiple files if this pertains to you. Select the file you created using the 1099 software. The IRS will notify the transmitter that the file was received.
