IRS Form 1099-S: Here’s what to know in 2022

Do you know year-end brings you a lot of paperwork? When it comes to real estate, there will be a huge amount of paperwork associated with real estate sales closing, etc. IRS Form 1099-S.

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On the other hand, attorneys & legal professionals need to be very careful when the year-end approaches & a new tax year begins. Because along with the beginning of the new tax year, the Internal Revenue Service requires every business to report the year-whole transactions. Among those transactions, real estate transactions are the one. To report these transactions you need to file 1099 S to the IRS respectively. Look at what is a 1099 S & who is it for below & start filing your 1099 S for the tax year 2022-23

What Is 1099-S?

IRS Form 1099 S also known as “Proceeds from Real Estate Transactions”. By the name itself, one can easily identify that the tax form used to report the sale or exchange of real estate property. In general, if you sell or exchange a property anytime in a tax period, then you must file 1099 S to the IRS & issue a copy to the seller.

irs form 1099-s

File 1099-S Form

Who is the 1099 S Tax Form For?

The person who made a reportable real estate transaction uses “IRS 1099 S Tax Form”. In general, a reportable real estate transaction consists of a whole or a partial sale of real property for money or any future interests. The real property may be improved land or unimproved land that includes air spaces, Permanent structures including industrial buildings, etc.

When & How to File 1099 S Tax Return Manually?

As we know, nobody likes dealing with taxes or penalties imposed along with interests. So, many real estate professionals start filing their respective 1099 Forms to avoid unwanted penalties. Not only real estate professionals, but most businesses will also be in a rush when a new tax year starts. Putting out a stack of files in front & start searching for their necessary info to file 1099 S. Filing a tax return manually a tedious task. Also, it may lead to room for errors. Because mistakes are the most common nature of mankind. So choose the best & alternate way to submit a tax return to the IRS.

Generally, the IRS requires paper filing 1099 S if submitting less than 250 information returns in a tax year. So, opt for a paper file if submitting fewer returns. Also, paper forms must be submitted to the IRS by “February 28th” every year.

Filing IRS Form 1099-S Online

As per the IRS norms, e-file 1099 S possible if reporting more than 250 real estate transactions made in a tax year. Also, the IRS recommends easy filing a single return online. Besides, e-forms must be submitted to the IRS by “March 31st annually”. So, make sure to file with an IRS-trusted Form 1099 e-file provider.

Form1099Online provides an e-filing service for all 1099 forms & makes your e-filing process simpler, easier, & quicker than ever before. Just within a few clicks, you can finish filing your 1099 S Form Online with zero errors.

Bulk filing or a single return we charge less than other e-file providers that make you choose us to e-file your 1099. Moreover, no hidden charges apply in the middle of e-filing. Don’t worry about your data 100% safe & secured under 256-bit security encrypted networks. Just hassle-less e-file 1099 S Online & stay away from one step from IRS Form 1099 penalties.