Real estate brokers must report the sale of homes and other real estate transactions to the Internal Revenue Service no later than Feb. 28, 1989.
The broker, generally the settlement agent or other person responsible for closing the transaction, must report the sale to the IRS on Form 1099-S, "Statement for Recipients of Proceeds From Real Estate Transactions." The form shows the name and address of the seller, the gross proceeds from the sale and other information.Reporting on Form 1099-S is required for 1988 for the sale or exchange of any structure designed for one to four families. This includes a house, duplex, four-unit apartment building or stock in a cooperative housing corporation. Regulations are being developed to expand these reporting requirements in the future.
Sellers receive a copy of Form 1099-S to help them file an accurate return. The IRS will allow Form 1099-S to be filed on paper forms if a broker expects to file less than 250 forms in a calendar year or if they receive an undue hardship waiver.
Otherwise, magnetic tape, diskettes or other magnetic media should be used.