Servicers of loans need to submit all reportable loans to the IRS and may wish to include loans with missing or invalid SSN/TIN numbers in order to minimize IRS penalties.
IMPORTANT! Seek the advice of a tax professional before choosing to include loans where the borrower has an invalid or missing TIN.
Environment:
IRS 1098/1099 Export
Workaround:
An optional checkbox, IRS 1098/1099 Export – Include TaxID Exceptions, is available on the System Administration > Table Setup > Company > End of the Year tab to choose to
include loans with invalid Tax IDs in the IRS 1098/099 Export and the associated IRS 1098, IRS 1099-Int and Annual Statement forms.
Select the option to include loans with the following exceptions in the exports:
- No Reported TIN
- TIN number less than 9 digits
- TIN number with same digits (example: 888888888)
Notes: - The Tax Payer Identification number field will be left blank in the IRS 1098/1099 Export and associated forms for loans with invalid TIN numbers.
- Make sure that the IRS 1098/1099 Export – Include TaxID Exceptions is set as desired at the end of the year, or in January prior to producing the IRS forms and exports.
- Seek the advice of a tax professional before choosing to include loans where the borrower has an invalid or missing TIN.
ArticleNumber:
000069510