What is Form 1099-S and When is it Due for the 2023 Tax Year?

Form 1099-S must be completed and distributed to recipients by February 15th! Learn more about this form and who must file it!

What is 1099-S and when is it due?

January may be behind us, but that doesn’t mean the 1099 deadlines with the IRS are over. There are still several 1099 forms that must be completed and distributed to recipients and filed with the IRS in the coming weeks. One of these forms is Form 1099-S. 

In this blog, we will break down the basics of this form, who the IRS requires to file it, and the deadlines associated with it. 

A Brief Overview of Form 1099-S

Form 1099-S is used to report the sale or exchange of real estate properties. Whether you’re a real estate professional, title company, or anyone involved in real estate transactions, filing this form is a crucial step in complying with IRS regulations. The form captures essential details, including the seller’s and buyer’s information, the property address, the gross proceeds from the sale, and more.

IRS Requirements – Who is Required to File Form 1099-S?

If you’re involved in a real estate transaction as a buyer, seller, or settlement agent, you may be required to file Form 1099-S. This includes transactions involving residential, commercial, or vacant land properties. 

Per the IRS, the person that is responsible for closing the transaction is the person responsible for filing Form 1099-S. This is often, but not always the transferee’s or transferor’s attorney. In some cases, this may be the title or escrow company that is disbursing the gross proceeds. 

For more specific information, check out the IRS instructions for 1099-S here

Information Required on Form 1099-S

This is the essential information that the IRS requires to be reported using Form 1099-S:

When preparing Form 1099-S for the 2023 tax year, ensure you include the following critical information:

Seller’s Name and TIN: Provide the legal name and taxpayer identification number (TIN) of the seller.

Buyer’s Name and TIN: Include the legal name and taxpayer identification number (TIN) of the buyer.

Property Address: Clearly state the address of the property involved in the transaction.

Gross Proceeds: Report the total gross proceeds from the sale or exchange of the property.

What are the Deadlines for Form 1099-S?

There are two major deadlines for filing Form 1099-S for the 2023 tax year. The first is the deadline to distribute copies to recipients. Next is the deadline for filing 1099-S with the IRS, when paper filing, the deadline is February 28, 2024. However, the deadline for filing 1099-S electronically is April 1, 2024. 

It is important to note that businesses filing more than 10 information returns are now required to file electronically. This new e-filing threshold came into effect on January 1, 2024, and applies to forms filed in 2024 for the 2023 tax year. 

Are there any other 1099 Deadlines on February 15th? 

Yes, there are a few more deadlines that may affect your business on February 15th. This includes Form 1099-B, used for reporting broker and barter exchange transactions, as well as Form 1099-MISC, particularly if you are reporting information in boxes 8 or 10.

TaxBandits: Easy, Secure, and Accurate E-filing of 1099-S

With TaxBandits, e-filing and distributing 1099-S Forms is a simple process. In addition to federal filing with the IRS, state filing for the required states is also available. Take advantage of these streamlined features to save time and meet the 1099-S deadline on February 15, 2024. 

  • Built-in error checks using the IRS Business Rules 
  • Bulk upload options for bringing filing information into the TaxBandits application
  • Postal Mailing options for recipient copies
  • Grant recipients Online Access to our secure portal to download their 1099-S copies
  • Maximize savings with volume-based pricing.
  • Track all filings from your account Dashboard and receive instant status updates as they are processed by the respective agencies. 

Ready to kickstart the filing process? Create or sign in to your TaxBandits Account now to keep your IRS compliance on track!

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