What is IRS Form 1099-S?
Form 1099-S is an IRS information return used for reporting the sale or exchange of real estate properties. This form is used to report the sales of, improved or unimproved lands (including airspace), permanent structures (including residential, industrial, or commercial building), and condominium units and its appurtenant fixtures and common elements (including land, co-op housing corporation stock, and any non-contingent interest in standing timber).
What are the due dates for Form 1099-S?
February 18, 2020 is the due date to distribute copies of Form 1099-S to the recipient. Form 1099-S is due by February 28, 2020 if you choose to file by paper. E-filing 1099-S is due on March 31, 2020.
Am I required to file Form 1099-S with the State?
Depends on the state requirements, you may need to file your Form 1099-S. If the state is a part of the Combined Federal/State Filing, then your returns will be forwarded to the participating states on your behalf. However, some states mandate the direct filing of 1099-S returns with additional filing requirements that fall to you. Check Your State Filing Requirements.
When to correct Form 1099-S?
If your Form 1099-S is rejected or you notice an error on an already filed 1099-S Form, you'll need to correct it as soon as possible. Corrections can be made electronically or on paper. If the error is part of the transferor's data, a corrected copy of Form 1099-S will need to be sent to them as well.
What incurs Form 1099-S penalties?
- Failing to file machine-readable paper forms
- Paper filing when you are required to e-file
- Failing to include all the required filing information
- Information or data entered incorrectly
- Failing to report a Taxpayer Identification Number (TIN)
- Reporting an incorrect TIN
Click here to know about Penalties.
How can I apply the extension to file Form 1099-S?
Need more time in Filing your Form 1099-S? You can apply for an automatic 30-day extension by completing Form 8809 and filing it by your original due date. Your extension will be approved within an hour. Learn More about Form 1099 Extensions.
