URGENT: 1099-S Form Updated

The IRS has adopted a new form for transactions closing in 2017.

The IRS quietly adopted a new 1099-S for transactions closing in 2017. As a result, the 1099-S (Copy B) form currently in DoubleTime should not be used for transactions occurring in 2017. Last week, ALTA issued a news release reporting that many were unaware of the change and the possible penalties for non-compliance. This sure got our phone lines humming!

Yes, the reporting form has been changed to move the same information around. A checkbox has been added to indicate if a seller is a “foreign person (nonresident alien, foreign partnership, foreign estate, or foreign trust)” and an existing box on the form has been renumbered.

We have been working diligently to get the revision in place for the pending release of DoubleTime version 7.0.5 and want you to be aware/reminded of the following:

• The new form is only for transactions occurring on and after January 1, 2017.
• The new forms cannot be filed with the IRS before 2018.
• A copy of Form 1099-S (typically Copy B) must be furnished to the transferor no later than February 15, 2018, but can be provided at closing or any time thereafter up to this deadline.
• Corrected forms can be furnished to transferors on or before February 15, 2018, without penalty.
• There are penalties for failing to file the form with the IRS and for failing to furnish copies to transferors.

If you have already furnished sellers on 2017 transactions with copies of the old 1099-S form, we believe you should provide them with the new IRS Form 1099-S (Copy B) before February 15, 2018. Here is the link to a PDF of the new 1099-S form that you can print and complete “by hand” and send to the seller.

Another option is to wait until you upgrade to 7.0.5 when prompted by an email we will send to you in the next several weeks. You will then go back into the files on which incorrect 1099-S forms were provided and produce the new 2017 1099-S to send to the seller.

Yet another option AFTER you upgrade to DoubleTime 7.0.5 is to batch print the group of 1099-S forms you need to re-send by following these instructions.

The new form 1099-S (Copy B) will automatically be produced once you upgrade to 7.0.5.

Two final reminders:

• This does not affect your 2016 transactions. You should be in the process of filing the 2016 1099-S forms with the IRS and you have until February 15th of this year to furnish your sellers with their copies of the 2016 forms if you have not already done so. The 2016 forms did not change so do not wait for the latest DoubleTime update to process them.
• You only need to re-send the new 1099-S form on those transactions closed in 2017 BEFORE you upgraded to DoubleTime 7.0.5. Any transaction closed for which a 1099-S was generated under DoubleTime version 7.0.5 will automatically include the new form. ​