Fillable Form 1099-A
1099-A Form is simply to notify the IRS that the property was foreclosed or reacquired by the mortgage holder or lender.
What is Form 1099-A?
The IRS Form 1099-A is used to report the acquisition or abandonment of secured property. The form is used by financial institutions to report information to the IRS about properties that have been acquired through foreclosure. This form is also used to report any debt that has been forgiven or canceled.
If you receive an IRS Form 1099-A, you should review the information carefully. Make sure that the information on the form is accurate. If you believe that there are errors on the form, you should contact the financial institution that issued the form.
You should receive a copy of Form 1099-A from the financial institution that issued it. You should also receive a copy of the form if you are the borrower on the property.
If you do not receive Form 1099-A, you should contact the financial institution that issued the form.
For cases where the property was acquired through foreclosure, you can find information about the foreclosure process in Publication 544, Sales and Other Dispositions of Assets.
Property acquired through foreclosure is generally treated as sold on the date of the foreclosure sale. The proceeds from the sale are used to pay off the debt on the property. Any remaining balance is paid to the borrower.
You must use the proceeds from the sale of the property to pay off the debt. You cannot use the proceeds for other purposes.
If you do not use the proceeds to pay off the debt, you may be liable for taxes on the forgiven debt.
You should consult with a tax advisor if you have questions about your tax liability.
When should you use Form 1099-A?
There are specific situations when you would use Form 1099-A. The form is used to report the acquisition or abandonment of secured property. The form is also used to report any debt that has been forgiven or canceled.
If you are a financial institution, you would use Form 1099-A to report information to the IRS about properties that have been acquired through foreclosure. You would also use the form to report any debt that has been forgiven or canceled.
If you are a borrower on a property, you should receive Form 1099-A from the financial institution that issued it. You should review the information on the form carefully to make sure that it is accurate. If you believe that there are errors on the form, you should contact the financial institution.
How to fill out Form 1099-A?
Form 1099-A contains three fillable copies:
Follow the instructions below to fill out the form accurately and correctly. All the instructions provided apply to all copies of Form 1099-A IRS.
Lender’s name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.
Enter the lender’s name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number.
Lender’s TIN
Enter the lender’s Tax Identification Number (TIN).
Borrower’s TIN
Enter the borrower’s Tax Identification Number (TIN).
Borrower’s Name
Enter the full legal name of the borrower.
Street Address (including apt. no)
Enter the borrower’s street address. If their address has an apartment number, include it in this section.
City or town, state or province, country, ZIP, or foreign postal code
Enter the borrower’s city or town, state or province, country, ZIP, or foreign postal code.
Account number
Enter the borrower’s account number.
Item 1: Date of lender’s acquisition or knowledge of abandonment
Enter the date when the lender acquired or when the lender first knew the property was abandoned.
Item 2: Balance of principal standing
Enter the outstanding balance of your loan on the date when the lender knew the property was abandoned or when the property was acquired. You should only enter the principal amount of the loan and do not include the interests, fines, or penalties if any.
Item 3
Leave Item 3 blank.
Item 4: Fair Market Value of Property
Enter the fair market value of the property. If the amount under this item is lower than the amount on Item 2 and your debt is canceled, you may have a cancelation of debt income. You should also receive a 1099-C form, Cancellation of Debt.
Item 5: Check if borrower was personally liable for repayment of debt
Check the box if the borrower is personally liable for the repayment of debt when the debt was created or last modified.
Item 6: Description of property
Enter the description of the property. The description required under this item also includes the address of the property. If there isn’t enough description, enter the property's lot, block, and section.
Here are some guidelines you need to follow when filling out Form 1099-A:
The form should be filled out in black ink.
When should you file Form 1099-A?
The lender should file Form 1099-A by February 28th (March 31st if e-filing) of the year following the calendar year in which the foreclosure occurs or when the abandonment is known. For example, if the property is foreclosed in 2019, Form 1099-A should be filed by February 28. If the abandonment is known in 2019, Form 1099-A should be filed by March 31.
However, if the borrower repays the debt after abandonment or foreclosure and before the lender files Form 1099-A, the lender does not have to file Form 1099-A.
How to file Form 1099-A?
Form 1099-A should be filed with Copy A to the Internal Revenue Service (IRS) along with Form 1096, Annual Summary and Transmittal of U.S. Information Returns.
Copy A of Form 1099-A goes to the IRS. The lender should send Copy B of Form 1099-A to the borrower by February 15th following the year in which the foreclosure occurs or when the abandonment is known. For example, if the property is foreclosed in 2019, Copy B should be sent to the borrower by February 15. If the abandonment is known in 2019, Copy B should be sent to the borrower by February 15.
If you’re e-filing Form 1099-A, you do not have to send Copy B to the borrower. Instead, keep it with your records.