TAX REPORTING ISSUES ON THE LENDING SIDE OF THE BANK

In addition to the information reporting provisions on the deposit side of a financial institution, the lending side of the bank has numerous IRS reporting requirements of its own. Financial institutions need to ascertain what types of transactions they have in their banks and make timely reports in...

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Bibliographic Details
Published in:ABA Bank Compliance 2006-03, Vol.27 (2), p.39
Main Author: Riedlinger, Cheryl S
Format: Article
Language:English
Subjects:
Bank compliance
Bank loans
Certification
Construction loans
Education
Fees & charges
Financial institutions
Fines & penalties
Lending
Lines of credit
Loan originations
Mortgages
Reporting requirements
Student loans
Taxation
Trusts
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Summary:In addition to the information reporting provisions on the deposit side of a financial institution, the lending side of the bank has numerous IRS reporting requirements of its own. Financial institutions need to ascertain what types of transactions they have in their banks and make timely reports in accordance with IRS regulations to avoid penalties. The following is an overview and checklist for lending transactions. Lenders who receive $600 or more on a loan secured by real property must report on Form 1098. In conjunction with the provision under Section 221 for taxpayors to deduct certain types of student loan interest, IRC Section 6050S required financial institutions to do reporting beginning in 1998 on Form 1098-E. Lenders who acquire in full or partial satisfaction of a debt an interest in the security or know of an abandonment of the property must report on Form 1099-A.
ISSN:0887-0187
1930-3963