Instructions For Form 1099-S - 2006 (Page 5 of 27) in pdf

but before the due date of Form 1099-S (without extensions).

Filer’s Name and Address Box

However, you cannot report gross proceeds in accordance with

Enter the name, address, and telephone number of the person

an allocation received on or after the due date of Form 1099-S

who is filing Form 1099-S. This information must be the same

(without extensions).

as the filer information reported on Form 1096.

If no gross proceeds are allocated to a transferor because

Transferor’s Name and Address Box

no allocation or an incomplete allocation is received, you must

report the total unallocated gross proceeds on the Form 1099-S

Enter the name and address of the seller or other transferor of

made for that transferor. If you do not receive any allocation or

the real estate. If a husband and wife are joint sellers, it is only

you receive conflicting allocations, report on each transferor’s

necessary to enter one name and the TIN for that person on the

Form 1099-S the total unallocated gross proceeds.

form.

Husband and wife. If the transferors were husband and wife at

Account Number

the time of closing, who held the property as joint tenants,

The account number is required if you have multiple accounts

tenants by the entirety, tenants in common, or as community

for a recipient for whom you are filing more than one Form

property, treat them as a single transferor. Only one Form

1099-S. Additionally, the IRS encourages you to designate an

1099-S showing either of them as the transferor is required.

account number for all Forms 1099-S that you file. See part L in

You need not request an allocation of gross proceeds if

the 2006 General Instructions for Forms 1099, 1098, 5498, and

husband and wife are the only transferors. But if you receive an

W-2G.

uncontested allocation of gross proceeds from them, file Form

1099-S for each spouse according to the allocation. If there are

You are not required to indicate on Form 1099-S that

other transferors, you must make a reasonable effort to contact

TIP

the transferor’s (seller’s) financing was federally

either the husband or wife to request an allocation.

subsidized. Also, you are not required to enter the

following:

Partnerships. If the property is transferred by a partnership,

•

file only one Form 1099-S for the partnership, not separate

Both total gross proceeds and the allocated gross proceeds

Forms 1099-S for each partner.

for a multiple transferor transaction (enter either one or the

other);

Multiple Assets Sold

•

An indication that the transferor may receive property or

If real estate is sold or exchanged and other assets are sold or

services for an obligation having a stated principal amount; or

exchanged in the same transaction, report the total gross

•

An indication that, in connection with a contingent payment

proceeds from the entire transaction on Form 1099-S.

transaction, the transferor may receive gross proceeds that

Taxpayer Identification Numbers (TINs)

cannot be determined with certainty under the regulations and

is not included in gross proceeds.

You must request the transferor’s TIN no later than the time of

closing. The TIN request need not be made in a separate

Box 1. Date of Closing

mailing. Rather, it may be made in person, in a mailing that

Enter the closing date. On a Uniform Settlement Statement

includes other items, or electronically. The transferor is required

(under RESPA), the closing date is the settlement date. If a

to furnish his or her TIN and to certify that the TIN is correct.

Uniform Settlement Statement is not used, the closing date is

For U.S. persons (including U.S. resident aliens), you may

the earlier of the date title transfers or the date the economic

request a TIN on Form W-9, Request for Taxpayer Identification

burdens and benefits of ownership shift to the transferee.

Number and Certification. Foreign persons must provide their

TIN to you on the appropriate Form W-8. See part J in the 2006

Box 2. Gross Proceeds

General Instructions for Forms 1099, 1098, 5498, and W-2G.

Enter the gross proceeds from the sale or exchange of real

Alternatively, you may provide a written statement to the

estate. Gross proceeds means any cash received or to be

transferor similar to the following: “You are required by law to

received for the real property by or on behalf of the transferor,

provide (insert name of person responsible for filing) with your

including the stated principal amount of a note payable to or for

correct taxpayer identification number. If you do not provide

the benefit of the transferor and including a note or mortgage

(insert name of person responsible for filing) with your correct

paid off at settlement. If the transferee assumes a liability of the

taxpayer identification number, you may be subject to civil or

transferor or takes the property subject to a liability, such

criminal penalties imposed by law.”

liability is treated as cash and is includible as part of gross

proceeds. For a contingent payment transaction, include the

The solicitation must contain space for the name, address,

maximum determinable proceeds. Also see Multiple Assets

and TIN of the transferor, and a place to certify under penalties

Sold above.

of perjury that the TIN furnished is the correct TIN of the

transferor. The certification must read similar to: “Under

If you are reporting a like-kind exchange of property for

penalties of perjury, I certify that I am a U.S. person or U.S.

which no gross proceeds are reportable, enter 0 (zero) in box 2

resident alien and the number shown on this statement is my

and enter an “X” in the checkbox in box 4.

correct taxpayer identification number.”

Gross proceeds do not include the value of property or

If you use a Uniform Settlement Statement (under RESPA),

services received or to be received by, or on behalf of, the

you may provide a copy of such statement, appropriately

transferor or separately stated cash received for personal

modified to solicit the TIN, to the transferor. Keep the Form W-9

property, such as draperies, carpeting, or a washer and dryer.

or substitute form in your records for 4 years.

Do not reduce gross proceeds by any expenses paid by the

transferor, such as sales commissions, deed preparation,

Separate Charge Prohibited

advertising, and legal expenses. If a Uniform Settlement

You may not charge your customers a separate fee for

Statement (under RESPA) is used for a transfer of real estate

complying with the Form 1099-S filing requirements. However,

for cash and notes only, gross proceeds generally will be the

you may take into account the cost of filing the form in setting

contract sales price shown on that statement. If other property

the fees you charge your customers for services in a real estate

or services were exchanged, see Box 4. Check Here if the

transaction.

Transferor Received or Will Receive Property or Services as

Statements to Transferors

Part of the Consideration on page S-4.

If you are required to file Form 1099-S, you must provide a

Contingent payment transaction. A contingent payment

statement to the transferor. Furnish a copy of Form 1099-S or

transaction is one in which the receipt, by or on behalf of the

an acceptable substitute statement to each transferor. For more

transferor, is subject to a contingency. The maximum

information about the requirement to furnish a statement to the

determinable proceeds means the greatest amount of gross

transferor, see part M in the 2006 General Instructions for

proceeds possible if all the contingencies are satisfied. If the

Forms 1099, 1098, 5498, and W-2G.

maximum amount of gross proceeds cannot be determined with

S-3

Instructions For Form 1099-S - 2006 Page 5

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