January 15th, 2013 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.
Convey provides tax information reporting services and software to businesses to make IRS compliance clear and uncomplicated. U.S. federal tax advice contained in this web site is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document. (iii) The taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.