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InfoSight Highlight – IRS Form 1098
Friday, December 9, 2016 6:35 AM

Credit unions (i.e., "interest recipients"/lenders) who receive mortgage interest payments of $600 or more during a calendar year must report those interest payments to the member (i.e., payer of record making those payments) and to the IRS on "Form 1098, Mortgage Interest Statement."

In 1994, the IRS issued a final regulation on reporting prepaid interest in the form of points paid on residential mortgages. Although this regulation took effect December 8, 1994, the reporting requirements do not apply to points received before January 1, 1995.

The IRS compares the 1098 provided by the credit union with the mortgage interest payments claimed as deductions on the member's income tax return.

Review the information today to help your credit union remain in compliance.

Source:  InfoSight Compliance.

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