2019 IRS Reporting of MIP
The Taxpayer Certainty and Disaster Tax Relief Act of 2019 reinstated the mortgage insurance premium (MIP) deduction for tax years 2018, 2019, and 2020. Since the IRS Instructions found in Publication 1220 and Form 1098 state that MIP should be reported if the deduction is applicable to a particular reporting year, MIP amounts of $600 or more paid in 2019 must be included in Box 5 of the 2019 Form 1098. Finastra is waiting for confirmation from the IRS to determine how to handle any amended Form 1098 requirements for 2018 reporting. More information will be provided when the IRS makes it available.
2019 reporting on Fusion Servicing Director is accommodated by ensuring that you have checked the “MI Premiums are Deductible” checkbox on the System Administration > Setup > Company > End of Year screen prior to transmitting your final IRS Export for the 2019 reporting year to the IRS and/or mailed 1098 forms for printing to your Borrowers.
If you have already transmitted the export file to the IRS for 2019 reporting and/or mailed 1098 forms, please contact Client Support for assistance in filing amended reporting to the IRS and your borrowers.
This Product Bulletin is posted to make you aware of the issue it describes so you can determine the steps or changes necessary to mitigate or avoid risk, ensure document compliance, or otherwise address the issue. This bulletin does not constitute legal advice. Any legal questions that your financial institution has should be directed to your compliance officer and legal counsel.
ArticleNumber:
000038297