Exception Tracking Spreadsheet (TicklerTrax™)
Downloaded by more than 1,000 bankers. Free Excel spreadsheet to help you track missing and expiring documents for credit and loans, deposits, trusts, and more. Visualize your exception data in interactive charts and graphs. Provided by bank technology vendor, AccuSystems. Download TicklerTrax for free.
IRS guidance on reporting mortgage insurance on Form 1098
The Internal Revenue Service has issued new guidance involving the deductibility of mortgage insurance premiums (MIP) for tax years 2018 through 2020. Recipients of mortgage payments who report mortgage interest payments on Form 1098 should also report MIP aggregating $600 or more received during the calendar year.
Lenders are not required to file or furnish corrected Forms 1098 for 2018 to report MIP for that year. However, the IRS encourages them to make that information available to borrowers so that they can decide whether to amend their 2018 income tax returns to claim the additional deduction. The IRS strongly recommends that lenders file corrected Forms 1098 for 2018 to report the MIP, as this will help substantiate the deductions and avoid IRS inquiries about any deduction that does not match the information return filed with the IRS.
For tax year 2019, Forms 1098 should be filed and furnished according to the usual due dates and include MIP in box 5. If a lender has already furnished the borrower statement without reporting MIP, it should send a corrected statement. Requests for extensions to file or furnish Forms 1098 should be submitted according to the specifications in the General Instructions for Certain Information Returns.
For tax year 2020, lenders should report MIP in box 5 and file and furnish Forms 1098 according to the specifications in the Instructions for Form 1098 and the General Instructions for Certain Information Returns