As a result of the recent signing of the Stopgap Highway Bill, mortgage servicers will now be required to meet additional reporting requirements. Currently, mortgage servicers are only required to report to the IRS certain information via Form 1098. Under the new bill, mortgage servicers will now need to report additional information such as:

  • Amount of outstanding balance
  • Address of the property
  • Loan origination date

To allow time to implement new reporting requirements the bill applies to all returns and statements due after Dec. 31, 2016. Due to the Trade Extension Act of 2015, it is critical for mortgage servicers to accurately file their Form 1098 timely to avoid heavy penalties.

If you have any questions regarding the new IRS reporting requirements, please contact Doeren Mayhew’s financial institution advisors in Michigan, Houston and Ft. Lauderdale.