Last Minute Change to 2012 1098 form
by Nick Green
As a part of The American Taxpayer Relief Act a change was made to allow mortgage insurance premiums to be treated as qualified residence interest. This provision had expired on December 31, 2011 but has now extended to December 31, 2013.
On January 14, 2013, the IRS came out with Internal Review bulletin 2013-10, which provided guidance on how to report this on the 1098 through 1220 electronic submission. However, they did not provide guidance for reporting this on the paper forms.
In conversations with the IRS, we obtained guidance that this information is to be reported in the current 2012 1098 form in the blank box4 (which is identified for use in providing “other information”). The filer should indicate in some way that the amount inserted into that box is reporting Mortgage Insurance Premiums paid. We are expecting official guidance in the very near future. You may recognize that this is where mortgage insurance premiums were reported on the 2011 form 1098.
Convey will be updating all of our products to accommodate this change over the next few days.