What Form Do I Need? - Posted by John-NY

Posted by Thomas K. Standen on March 22, 2002 at 18:56:10:

When trying to figure out what form and/or requirements of the IRS, it is always best to go to the code to see if you can obtain the answer.

The following Internal Revenue Code Section 6050H is the Section governing the issuance of Form 1098, Mortgage Interest Statements:

26 USCS 6050H (2000)

6050H. Returns relating to mortgage interest received in trade or business from individuals.

(a) Mortgage interest of $ 600 or more. Any person–

(1) who is engaged in a trade or business, and

(2) who, in the course of such trade or business, receives from any individual interest aggregating $600 or more for any calendar year on any mortgage, shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may by regulations prescribe.

(b) Form and manner of returns. A return is described in this subsection if such return–

(1) is in such form as the Secretary may prescribe.

(2) contains–

(A) the name and address of the individual from whom the interest described in subsection (a)(2) was received,

(B) the amount of such interest (other than points) received for the calendar year,

© the amount of points on the mortgage received during the calendar year and whether such points were paid directly by the borrower, and

(D) such other information as the Secretary may prescribe.

© Application to governmental units. For purposes of subsection (a)–

(1) Treated as persons. The term ‘person’ includes any governmental unit and (any agency or instrumentality thereof).

(2) Special rules. In the case of a governmental unit or any agency or
instrumentality thereof–

(A) subsection (a) shall be applied without regard to the trade or business requirement contained therein, and

(B) any return required under subsection (a) shall be made by the officer or employee appropriately designated for the purpose of making such return.

(d) Statements to be furnished to individuals with respect to whom information is required. Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing?

(1) the name, address, and phone number of the information contact of
the person required to make such return, and

(2) the aggregate amount of interest described in subsection (a)(2) (other than points) received by the person required to make such return from the individual to whom the statement is required to be furnished (and the information required under subsection (b)(2)©).

The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.

(e) Mortgage defined. For purposes of this section, except as provided in regulations prescribed by the Secretary, the term ‘mortgage’ means any obligation secured by real property.

(f) Returns which would be required to be made by 2 or more persons. Except
to the extent provided in regulations prescribed by the Secretary, in the case of interest received by any person on behalf of another person, only the person first receiving such interest shall be required to make the return under subsection (a)

(g) Special rules for cooperative housing corporations. For purposes of subsection (a), an amount received by a cooperative housing corporation from a tenant-stockholder shall be deemed to be interest received on a mortgage in the course of a trade or business engaged in by such corporation, to the extent of the tenant-stockholder’s proportionate share of interest described in section 216(a)(2). Terms used in the preceding sentence shall have the same meanings as when used in section 216.

The acutal forms are available from IRS, you can order them on line and there is no cost for this service.

I know this is rather long; however, you can cut and past it and then save it as a reference for future use.

Thomas K. Standen
North American Loan Servicing

What Form Do I Need? - Posted by John-NY

Posted by John-NY on March 08, 2002 at 24:39:17:

I have a small second note that I own. What form do I need to send to the homeowner? this would be for taxes/interest paid.