Released on = December 28, 2006, 1:51 pm

Press Release Author = Mortgage Note Liquidators

Industry = Real Estate

Press Release Summary = As the end of the year approaches, there are a few tax
filing deadlines in January that affect many people who hold mortgage notes. Even
though the tax deadline is April 15th, don\'t be caught unaware of filings required
for Form 1098 - Mortgage Interest Statement.
This very basic primer of information on Form 1098 may assist a mortgage note holder
in identifying potential filing requirements.

Press Release Body = As the end of the year approaches, there are a few tax filing
deadlines in January that affect many people who hold mortgage notes. Even though
the tax deadline is April 15th, don\'t be caught unaware of filings required for Form
1098 - Mortgage Interest Statement.
This very basic primer of information on Form 1098 may assist a mortgage note
holder in identifying potential filing requirements.

1 Form 1098 - Mortgage Interest Statement

Federal law requires that mortgage holders use Form 1098, to report mortgage
interest of $600 or more received during the year in the course of their trade or
business from an individual, including a sole proprietor. The $600 threshold applies
separately to each mortgage; requiring a separate Form 1098 for each mortgage.


2 Filing Deadlines

The appropriate form is prepared for each reportable party and sent to the IRS with
a duplicate form sent to the individual payee. In addition, prepare and file a Form
1096 summarizing all the information filed on Form 1098. Each of these forms are due
to the IRS by February 28 of each year for the prior calendar year. A copy of Form
1098 must also be sent to the recipient of the payment by January 31.


3 Penalties

Be aware that there are stiff IRS penalties for not filing Form 1098. There can be a
penalty for failure to obtain an appropriate tax identification number and/or filing
late to a payee, as well as for not filing a copy with the IRS. The mortgage
holder should obtain competent professional tax advice to determine whether they are
or are not receiving mortgage interest incident to a trade or business.


4 Exemptions

Some mortgage holders may not be required to file this form if the interest is not
received in the course of their trade or business. For example, a mortgage holder
not engaged in any other business, lent money to an individual to buy the mortgage
holders personal home. That mortgage holder may not be subject to this reporting
requirement because they did not receive the interest in the course of their trade
or business. Review individual specific situations with a competent tax
professional.

If the services of a collection agent or servicing company are utilized to collect
interest payments, chances are the that collection agency or servicing company will
file Form 1098. Double check that this is being properly handled.


Summary

This general basic overview is presented with the understanding that the author is
not engaged in rendering legal, accounting, taxation or other professional services.
If legal or other expert assistance is needed, the services of a competent
professional person should be secured. Free tax publications and forms can be
obtained by contacting the IRS at 800-829-3676 or better yet, download the
information and forms from the IRS website at http://www.irs.gov

For more information on seller financed mortgage notes, please visit
http://www.mtgnoteliquidators.com/index1.php



Web Site = http://www.mtgnoteliquidators.com/index1.php

Contact Details = George Crozier
6135 Terrace Green
East Amherst , 14051
$$country

716-559-1862
pressrelease@mtgnoteliquidators
http://www.mtgnoteliquidators.com/index1.php