IRS Form 1099-S (Tax Year 2025)
Proceeds From Real Estate Transactions
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The IRS now requires electronic filing of 10 or more information returns beginning with tax year 2023.
Key Requirements
If you filed a TCC application before September 26, 2021, you must reapply and verify identity through ID.me.
Paper filing is only allowed if you have 10 or fewer returns.
As a result, more companies are adopting third-party e-filing services.
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IRS Form 1099-S, Proceeds from Real Estate Transactions, is used to report the sale or exchange of real estate. It provides the IRS and the seller with information about the proceeds from the transaction. The form is typically issued when someone sells or exchanges real estate, including land, residential, commercial, or industrial property. The information on this form helps the seller determine capital gains or losses from the transaction, which must be reported when filing taxes.
Who Issues Form 1099-S
Real estate brokers, escrow companies, title companies, or attorneys who handle the closing or settlement of a real estate transaction are responsible for issuing Form 1099-S to both the IRS and the seller of the property.
Who Receives Form 1099-S
Any individual or entity that sells or exchanges real estate will receive Form 1099-S if the transaction qualifies. The form provides the seller with the gross proceeds from the sale, which they need to report when filing taxes.
Purpose of Form 1099-S
The purpose of this form is to report the gross proceeds from the sale or exchange of real estate to both the IRS and the seller. This form ensures that the IRS is notified of real estate transactions that may result in taxable capital gains or losses for the seller, helping to track income generated through these sales.
Due Date
Furnish Copy B to the borrower by January 31. File electronically by March 31.
