THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: NL000002
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Bulletin: NL000002
Dear Associates:
Effective immediately due to change in federal law, you may no longer make a separate charge for the preparation of 1099 Reporting Forms on the sales of real estate. Federal law does not prohibit an increase of other charges to the customer due to the extra burden placed on you by 1099 reporting. Federal law also does not prohibit you from paying a third party to perform all or part of your 1099 reporting.
As you are aware, the title company is generally responsible for 1099 real estate reporting on noncorporate sellers involving sales of improved 1-4 family residential property. Until the enactment of the Technical Corrections Act (Tax Bill) signed by President Reagan on November 10, 1988, you were allowed to make a separate charge for your preparation of 1099s. However, this legislation now prohibits any separate charge.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None