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Press Release - January, 2013

Jean-Philippe
Manger
Email Jean-Philippe

Critical 1098 Filer Process Update!

On January 2, 2013 President Obama signed the American Taxpayer Relief Act of 2012, better known as the "fiscal cliff bill". Among the provisions was the retroactive reinstatement of Mortgage Insurance Premiums deductions for tax years 2012 and 2013. Today the IRS released updated form 1098 instructions to accommodate the new reporting. The new instructions affect both the 1098 borrower statement and the 1098 electronic filing.

Update: Process for completing form 1098 / borrower statement printing:

For 2012, in order to report mortgage insurance premiums to both the borrower and the IRS, enter the letters MIP followed by the amount being reported into the first line of the "free form" box 4. Do not enter any commas.

Example: To report $425.15 of mortgage insurance premiums paid by the borrower in 2012 enter "MIP 425.15" into the first line of box 4 of their 2012 1098.

For large volume filers, this change should be made on the 1098 import file before importing into the 1099 Pro software. In the example, "MIP 425.15" should be mapped to "Box 4 Line 1" allowing the filers use of Box 4 Lines 2 & 3. If the filer does not intend to use Box 4 Lines 2 & 3 then "MIP 425.15" can be mapped directly to "Box 4 All Lines".

Update: e-filing form 1098 / electronic filing process: (Enterprise & Corporate Suite customers Only.)

The IRS Publication 1220 (electronic filing specifications) has been updated to add the new box 4 amount code specifically for mortgage insurance premiums. The 1099 Pro Enterprise(2012.13.15+) and Corporate Suite(2012.13.12+) software has been updated to scan the free form box 4 for the words MIP followed by the amount. That amount will be reported in the new box 4 position of the electronic file.

Note: The 1099 Pro Service Bureau and www.eFileMyForms.com have the electronic filing update already in place.

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About 1099 Pro, Inc.

1099 Pro, Inc. ( www.1099pro.com ) is a market-leading provider of information-reporting Solutions & Services for 1099, W-2 and 1042-S filers. 1099 Pro develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with all 1099, W-2 and 1042-S filing requirements.

1099 Pro products range from i) Client Server / ASP applications capable of filing over 100 million records utilizing a MS SQL back end with a multi year presentation of forms via Internet Explorer to ii) desktop software products for filing from 20 - 100,000 forms to iii) www.eFileMyForms.com for internet filing of < 20 forms. Adjunct products include secure Hosting and Services for information processing, printing, filing and penalty abatement.

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