IRS Modifies Form 1098 for Reporting Year 2016

MELVILLE, N.Y. - Aug. 22, 2016 - PRLog -- Amendments of mortgage reporting requirements by Public Law 114-41, Sec. 2003, require the following information to be reported on IRS Form 1098, Mortgage Interest Statement: The amount of outstanding principal on the mortgage as of the beginning of such calendar year; The date of the origination of the mortgage; The address (or other description in the case of property without an address) of the property which secures the mortgage. These amendments apply to returns required to be made, and statements required to be furnished, after December 31, 2016.

New Box 2. This box is used to report the amount of outstanding mortgage principal as of January 1, 2016.

New Box 3. This box is used to report the date of the origination of the mortgage.

New Box 5. This box has been added for reporting mortgage insurance premiums of $600 or more.

New Box 7. This box is used to indicate whether or not the address of the property securing the mortgage is the same as the Payer's/Borrower's mailing address. If the address is not the same, the property address or property description will be required in new box 8 or new box 9, respectively.

New Box 10. This box can be used to report Other Information to the Payer/Borrower. Other information can include real estate taxes, insurance paid from escrow, cooperative information, etc. This information is not reported to IRS.

Account Ability is a robust network ready software package which, together with its entire database, resides on your computer or local area network, not that of some online or cloud-based service. Therefore, users can enter as many returns as desired without ever incurring extra charges, as is common with most online processing systems. The base package includes electronic reporting, plain paper filing and taxpayer identification number matching for the entire family of information returns (1098, 1099, 3921, 3922, 5498, W-2G). Account Ability complies with IRS Publication 1220, SSA EFW2/EFW2C reporting specifications and IRC sections 6039, 6050W. The ACA add-on for 2016 extends this processing power by adding IRC 6055 and 6056 compliance to this extensive library.