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Form 1099-S Deadlines for Real-Estate Payers

Form 1099-S Due dates

You might take the traditional route and paper-file Form 1099-S, or e-file your way to the finish line. But to report real estate sales like a pro to the IRS, payers must manoeuvre a strict timeline. Whatever method you choose, it’s key that you pay attention to Form 1099-S due date 2025. Otherwise, will cost you steep penalties, valuable time, and IRS notices.

What is Form 1099-S?

Form 1099-S is an important IRS tax reporting form used to report gross proceeds from the sale or exchange of real property. The payer, who is usually the settlement agent or closing attorney, files this form to give the IRS the data it needs to match the seller’s capital-gain reporting.

So, who files it before Form 1099-S due date 2025? The payers such as title companies, escrow agents, or settlement attorneys furnish it to sellers and file it with the IRS.

When is a 1099-S Required?

Form 1099-S is needed whenever there is any sale or exchange of real property. The transactions could be residential, commercial, timber/mineral rights, foreclosures, or exchanges.

There’s no minimum dollar threshold to file Form 1099-S. Every reportable real estate deal, even if it’s a $1 deed gets a Form 1099-S.

Key Deadlines for Form 1099-S

Mark the following deadlines for 1099-S on your calendar to plan accordingly and dodge late 1099-S fees. Make sure you don’t miss critical 1099-S IRS filing deadline and stay on top of your game!

What the payer must do Standard date 2026 date*
Send Copy B to the seller February 15 February 17 (Sunday + Presidents’ Day)
Mail paper Copy A + Form 1096 to the IRS February 28 February 28
E-file Copy A to the IRS March 31 March 31

Note: If any due date falls on a Saturday, Sunday, or federal legal holiday, the deadline is automatically extended to the next business day.

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Form 1099-S: Paper vs E-File

Filing Form 1099-S is like sending out party invitations. You can send a handwritten note or send a quick email, with some rules based on which one you choose.

  • Paper: Send Copy A with one Form 1096 cover sheet.
  • E-File: Use the free IRS Information Returns Intake System (IRIS) or Tax1099 for a guided, faster filing.
  • 10-Return E-file Rule: The IRS mandats that if you have 10 or more total information returns including W-2, 1099s, etc., you must file electronically. You cannot opt for paper filing.

Need More Time?

What if you’re drowning in other work and need a breather to file Form 1099-S? In this situation, the IRS gives you an extension if you file Form 8809 by the original IRS due date.

Note that Form 8809 extension moves only the deadline for the IRS copy. The due date for Copy B to the seller never changes.

Also, in case of disasters, special relief dates often apply. Always check real-time IRS notifications.

Penalties to Avoid

How late? Penalty per form
≤ 30 days $60
31 days – August 1 $120
After August 1 $330
Intentional disregard $660+

Note:

  • Late or wrong seller copies trigger the same fees.
  • If you spot any mistake, always correct it within 30 days to minimize penalties.

Checklist for Filing Form 1099-S

If the thought of real-estate sale reporting overwhelms you, having a checklist is a must for payers. It breaks down big, terrifying tasks into simple, more manageable steps. Here’s your checklist to file Form 1099-S with ease:

  • Collect a completed W-9 form from the seller before money changes hands.
  • Decide who will file Form 1099-S through a written agreement. It may be included in the closing statement.
  • Add Copy B and IRS dates to a shared calendar. Set multiple reminders like 30 days, 14 days, and 7 days before each deadline.
  • Test e-file login credentials in early January. This will give you time to resolve any access issues before the filing.
  • Store W-9s, mailing proofs, and e-file receipts for at least four years after filing.

Real-Life Scenarios

Closing Day and Action On-time? Next Step for the Payer
December 30, 2025 sale; Copy B handed over at the table Yes File IRS copy by February 28 (paper) or March 31 (e-file)
January 3, 2026 sale; Copy B mailed on February 18 Yes February 17 holiday shift makes it on time
8 W-2s + 4 1099-S returns in 2025 Must e-file Use Tax1099 to send all 12 returns
Copy B sent on March 10, 2026 $60 penalty Pay or request waiver if it’s a good cause
Timber-royalty payment of $900 (July 2025) Report required Same due dates as any property sale

FAQs

1. Is January 31 a deadline for Form 1099-S?

No, real estate sales always follow what’s known as the mid-February rule.

2. Do small-dollar sales get a pass from reporting?

No. There is no minimum dollar threshold exemption for Form 1099-S reporting.

3. Can one form cover several properties sold to the same person?

Yes, combine the total gross proceeds from all properties and list the key details of each property on the form.

4. How can I fix a typo on the form?

Check “CORRECTED” on the new form, complete it with the right information and send the seller the new copy. Then e-file the corrected return with the IRS.

5. Can the lender file Form 1099-S instead of the closing agent?

Yes, but only if everyone signs a simple written designation agreement specifically assigning the lender as the responsible filing party. Keep proper documentation of the agreement.

6. Is the possible to get an extension on Copy B?

No. Extensions apply only to Copy A, which is the IRS copy, not to the seller’s statement.

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