Does anyone know if the lender will correct and resend within 2 weeks if requested by taxpayer or will the lender only verbally give the correct data over the phone to the taxpayer?
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The last time I ran into an incorrect 1098, the lender gave us all sorts of runarounds & promises but never did issue a corrected form. Luckily the original 1098 was grossly overstated, so I just reduced the deduction to the amounts I was actually looking at on the amortization schedule. Guess I would have done the same if the 1098 had been understated, but I'd have warned the client to expect an inquiry in about 18 months."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
I'll echo JohnH on this. I had a t/p last year that received 2 1098's from his bank for different amounts which overstated his deduction by over 100%. I calculated his actual interest and we used that. No corrected form was ever received.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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Are you sure there wasn't a prepayment penalty included? Those will often just show up as extra interest on the 1098.Comment
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In this case
the overstatment was thousands of dollars. The interest would have exceeded the t/p's AGI.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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