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New 1099-S for 2017 PDF Print E-mail

DATE:           February 6, 2017

RE:              New 1099-S for 2017 


The IRS has added a new field to the 1099-S for 2017, and, in doing so, has also shifted around the box numbers. The new Box 5 asks the transferor to indicate if they are a foreign person (nonresidential alien, foreign partnership, foreign estate, or foreign trust). The revised form also comes with more detailed instructions for both transferor (seller) and filer (closing attorney). The directions for Box 5 state as follows: If checked, shows that you are a foreign person (nonresident alien, foreign partnership, foreign estate, or foreign trust).

Why are we worrying about this now? Because the changes also affect the Substitute 1099-S. As you may know, the IRS has carved out an exception to the mailing requirement in place for most 1099s: For Form 1099-S, which is used to report a seller's proceeds from real estate transactions, the filer may also furnish the statement to the transferor (seller) at closing. Most closing attorneys use a Substitute 1099-S to do this. If you use software to prepare your closing packages, that form may be in your system - if so, please be sure that your software company has updated your program to include the 2017 template. If you prepare the Substitute 1099-S yourself, you will find a Word version attached to this memo. You should use the new Substitute 1099-S for all of your 2017 purchases. If you have already closed a purchase in January and did not use the new form, you will need to contact the sellers in order to obtain the additional required information and provide them with a revised Substitute 1099-S.

These changes do not affect closings which took place in 2016.

If you have any questions about these changes, please feel free to contact Attorney Sue Ellen Rogal at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

To obtain a copy of the 2017 General Instructions for Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498 and W-2G) and 2017 Instructions for Form 1099-S please visit

Attachment: Substitute 1099-S (in Microsoft Word)


IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we wish to inform you that, unless expressly stated otherwise, any purported U.S. tax information contained in this communication (including any attachments) is not intended or written to be relied upon or used, and cannot be relied upon or 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 addressed herein.
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