You can add 1099-A and 1099-C records for a loan. You are required to submit 1099-A forms to borrowers where the property has been abandoned or foreclosed. You are required to submit 1099-C forms to borrowers where there has been a cancellation of debt. If you need to send both the 1099-A and the 1099-C to the same borrower, you may send only the 1099-C form as long as the events requiring the forms both occur in the same reporting period. For more information about when you need to send 1099-A and 1099-C forms, see the appropriate IRS publication ("Instructions for Form 1099-A and 1099-C") and consult your legal counsel.

IMPORTANT! If you service loans for FNMA or FHLMC, you must read Submitting IRS 1099-A for FNMA and FHLMC before running the export or forms.

Complete the steps below to add a 1099 A/C record.

1. Open Customer Service. The Choose ID screen appears.
2. Enter the loan for which you want to add 1099 A/C information, and click OK. The Customer Service screen appears and displays information for that loan.
3. Click Other > 1099 A/C Reporting. The Select 1099 A/C screen appears.
4. Click New. The New 1099 A/C screen appears.
5. Select the borrower for whom you are creating the 1099 A/C record from the Borrower's Name list box by double-clicking on the name. The Reported Name field and the Reported Tax ID field display information for the selected borrower. The information in the Reported Name and Reported Tax ID fields is the information included in the 1099 A/C export file that you send to the IRS.

Note: You cannot change the borrower name or tax ID on the New/Edit 1099 A/C screen. You must make the changes on the Edit Borrower screen. After you change this information on the Edit Borrower screen, you see the changes reflected on the New/Edit 1099 A/C screen.

6. Enter the mailing address for this borrower in the Address Line 1, Address Line 2, City, State, Zip, and Country fields.
7. Enter the property or legal address in the Debt/Prop Desc field if you are adding a 1099-A record. Enter a description of the debt that was cancelled if you are adding a 1099-C record. Enter both the appropriate address and the description of the canceled debt if you are adding a combined 1099-A and 1099-C record.
8. Enter the date through which you are reporting information to the IRS in the Reporting Date field. This date should be 12/31 for the reporting year.
9. Select the type of 1099 record you are adding from the drop-down list for the Type of Return field.
10. Enter the date on which the event for which you are reporting occurred in the Form Date field. For example, if you are adding a 1099-C record for a cancellation of debt, enter the date that the debt was canceled.
11. Enter the balance of the loan in the Bal/Debt Amt field if you are adding a 1099-A record. Enter the amount of debt that was canceled if you are adding a 1099-C record.
12. Enter the amount of interest included in the amount of debt canceled in the Interest field—if you are adding a 1099-C record. (The amount of debt canceled is entered in the Bal/Debt Amt field.)
13. Enter the fair market value for the property, as defined by the IRS regulations in the Fair Market Value field — if you are adding a 1099-A or a combined 1099-A and 1099-C record.
14. Select the Borr Liability check box if the borrower is liable for the debt. Leave this check box blank if the borrower is not liable for the debt.
15. Select the Bankruptcy check box if the borrower has declared bankruptcy. Leave this check box blank if the borrower has not declared bankruptcy.
16. Click OK. 

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000047585