The recent fiscal cliff tax deal extends the ability to treat mortgage insurance premiums as qualified residential interest, and the Internal Revenue Service is providing guidance on how to report the premiums on Form 1098, both electronically and on paper.
As part of the American Taxpayer Relief Act, a provision allowing mortgage insurance premiums to be treated as qualified residence interest, which had expired on Dec. 31, 2011, has been extended until Dec. 31, 2013.
The IRS issued guidance earlier this month in
Convey Compliance Systems, a tax information reporting software company, contacted the IRS and received an
“Last year the IRS made more than 70 changes to state and federal tax information reporting filing requirements, many of which were announced at the last minute while tax professionals were in the midst of preparing their tax information returns,” said Convey Compliance executive vice president Troy Thibodeau. “This latest unannounced change for 2012 filing suggests that this year will be no different. Tax professionals face more tax information reporting responsibilities than ever before. For those filing tax information returns unaided, this responsibility is compounded by a need to be ever more vigilant for last-minute changes or risk submitting information incorrectly.”