Guide
Seller Information for Form 1099-S: What to Collect Before Closing
To report a sale on Form 1099-S, the settlement agent needs each seller’s legal name, mailing address and taxpayer identification number, plus any certifications that affect reporting. Collecting it on a secure form before closing avoids last-minute calls and retyped numbers.
By TitleMagic · Published · 5 min read
Who files Form 1099-S
Form 1099-S reports gross proceeds from real estate transactions to the IRS. The person responsible for closing the transaction, usually the settlement agent or title company named on the closing statement, is generally the one who files it and furnishes a copy to each seller.
Because the filer is responsible for the accuracy of what is reported, the seller information has to be complete and legible well before the funding deadline.
Information to request from every seller
- Full legal name exactly as it should appear on the form (and for an entity, its legal name)
- Taxpayer identification number: a Social Security number for individuals, an EIN for entities
- A signed TIN certification (for example Form W-9 or an acceptable substitute)
- Current mailing address and a forwarding address after closing, so the statement reaches the seller
- Marital status and spouse information where it affects ownership or the exclusion certification
- For more than one seller: how the gross proceeds are allocated among them
The principal residence exclusion certification
A sale of a principal residence may be exempt from 1099-S reporting when the seller signs written assurances that meet the IRS conditions (including ownership and use as a principal residence and a sale price within the stated limits). If the seller cannot give every assurance, the sale is reported.
Ask the question on the seller form itself and capture the signed certification with the rest of the seller’s answers, so the file shows why a form was or was not filed.
Foreign sellers
Ask every seller whether they are a U.S. person for tax purposes. A foreign seller can trigger FIRPTA withholding obligations, which need to be identified early so the closing figures are right. A certification of non-foreign status is commonly collected from U.S. sellers.
Collecting it securely
Tax identification numbers should never travel by plain email, fax cover sheet or voicemail. With TitleMagic the seller opens a personal Magic Link, types the information once on any device and e-signs. Sensitive numbers are encrypted at rest, shown masked in the processor dashboard, and every reveal is logged.
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