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What is IRS Form 1099-A?

RS Form 1099-A is used to report Acquistion or Abandonment of Secured Property.

Form 1099-A has 3-pages of forms that are held together by a perforated edge. The first page is Copy A and that is sent to the IRS.  Copy B is sent to the borrower and Copy C is retained by the lender. You can detach Copy A from the rest of the forms and print just the data on top of Copy A and print.  If you are filing electronically, you are exempt from using the red-ink forms.  Copy B and Copy C can be printed on plain paper with black ink.  Both Copy B and C do not need to be in the same layout as the IRS form.  The boxes can be moved around or arranged differently on the form; what is important is that all of the information is shown on the form and transmitted to the borrower.

The top part of the form shows the lender name, address, phone and TIN followed by the borrower name, address and TIN.  The account number is also displayed.

Then there are 6 boxes of information.  Box 3 is shaded and nothing is expected for that box. The other boxes are discussed below:

Box 1. Shows the date the lender’s acquired or had knowledge of abandonment.

Box 2. Shows the balance of principal outstanding.

Box 4. Shows the fair market value of the property.

Box 5 is checked if the borrower was personally liable for repayment of the debt.

Box 6. Shows the description of property.

In 2008, there were many fraudelent filings of the 1099-A and 1099-OID.  We met with the IRS several times and the IRS we met with said that individuals should never file IRS Form 1099-A and instead only banks or financial institutions.  We agreed that we would sell the 1099-A software to Banks or Financial Institutions that provide:

  1. The name of the bank and/or financial institution.
  2. A valid FDIC number and/or ABA routing number of that bank and/or financial institution.

Furthermore, after ordering, we will only provide a passcode to register the software only to an employee from that bank that purchased the software.  We will e-mail an employee of that bank or financial or call them and provide a passcode. These two conditions prevent us from selling the software to individuals, which is what the IRS wants.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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