Form 1099-A
File Form 1099-A, Acquisition or Abandonment of Secured Property, for each borrower if you lend money in connection with your trade or business and, in full or partial satisfaction of the debt, you acquire an interest in property that is security for the debt, or you have reason to know that the property has been abandoned. You need not be in the business of lending money to be subject to this reporting requirement
Who must file:
In addition to the general rule specified above, the following rules apply.
Multiple owners of a single loan. If there are multiple owners of undivided interests in a single loan, such as in pools, fixed investment trusts, or other similar arrangements, the trustee, record owner, or person acting in a similar capacity must file Form 1099-A on behalf of all the owners of beneficial interests or participations. In this case, only one form for each borrower must be filed on behalf of all owners with respect to the loan. Similarly, for bond issues, only the trustee or similar person is required to report.
Governmental unit. A governmental unit, or any of its subsidiary agencies, that lends money secured by property must file Form 1099-A.
Subsequent holder. A subsequent holder of a loan is treated as a lender and is required to report events occurring after the loan is transferred to the new holder..
Multiple lenders. If more than one person lends money secured by property and one lender forecloses or otherwise acquires an interest in the property and the sale or other acquisition terminates, reduces, or otherwise impairs the other lenders' security interests in the property, the other lenders must file Form 1099-A for each of their loans. For example, if a first trust holder forecloses on a building, and the second trust holder knows or has reason to know of such foreclosure, the second trust holder must file Form 1099-A for the second trust even though no part of the second trust was satisfied by the proceeds of the foreclosure sale.
- Box 1. Date of Lender's Acquisition or Knowledge of Abandonment
- Box 2. Balance of Principal Outstanding
- Box 3. Reserved
- Box 4. Fair Market Value (FMV) of Property
- Box 5. Was Borrower Personally Liable for Repayment of the Debt
- Box 6. Description of Property
How to E-FILE IRS Form 1099-A:
- Register or Sign in to your account
- Select a new 1099-A Form or Click on New filing
- Enter Payer, Recipient and Form 1099-A details.
- Enter state info as per the state requirement.
- Verify the info in the Cart or unsubmitted forms page
- Submit the Form 1099-A with the IRS and complete your requirement
