I'm wondering...are your clients receiving a 1099-S for residence sales? I have two clients that didn't receive a 1099-S. One sold a personal residence (they were only there 1 yr), another sold rental property, neither received a 1099-S. My understanding is the closing agent is required to send a 1099-S , unless they've received a form exempting the sale.
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some do, some don't
When signing all the closing paperwork, there is usually a statement buried in the pile that asks the seller if they want a 1099-S or if the sale is exempt under the primary residence exclusion. Most people don't have a clue what it is saying they just sign. Sometimes the form is marked Yes but should be No, and sometimes it's marked No and should be Yes. That's why some people get them and some don't. It's the same with the IRS Form 4506 that is those packets, people don't understand that they are signing permission for the mortgage company to obtain their prior years tax returns if they want to verify information in the mortgage application."A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain
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