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#26111 - 07/31/02 03:11 PM Refund of Orig Fee and 1098 Reporting
RVFlyboy Offline
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RVFlyboy
Joined: Oct 2000
Posts: 5,992
Soaring over Georgia
We charged a borrower an origination fee in a prior year for a loan and reported it in 1098 reporting for that year. Now we want to refund the origination fee. What steps do we need to take with regard to the prior year 1098 filing?
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#26112 - 07/31/02 03:15 PM Re: Refund of Orig Fee and 1098 Reporting
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,628
Galveston, TX
I don't think it would fall under the 1098 rules. Most likely it would be considered miscellaneous income and fall under the 1099MISC rules and unless it was more than $600, it would not be reportable. Although, this doesn't sound right after I have it on paper.
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#26113 - 07/31/02 03:22 PM Re: Refund of Orig Fee and 1098 Reporting
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,628
Galveston, TX
I was wrong - refer to 1098 Instructions and you will find the instructions for the overpayment/refund of interest from previous years.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#26114 - 07/31/02 05:55 PM Re: Refund of Orig Fee and 1098 Reporting
RVFlyboy Offline
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RVFlyboy
Joined: Oct 2000
Posts: 5,992
Soaring over Georgia
Thanks for your quick response.
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Jim Bedsole, CRCM, CBA, CFSA, CAFP
My posts - my opinions

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#26115 - 07/31/02 06:33 PM Re: Refund of Orig Fee and 1098 Reporting
DebNP Offline
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DebNP
Joined: Oct 2001
Posts: 179
Eastern PA and NJ
Depending on your loan system - you may have an adjustment field for 1098 reporting, particularly if it is too late to adjust prior to the mag tape being sent to the IRS. You may want to have your Loan Operations or Systems people look to see if a field exists, if so how it works.

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