Q Is the charge to process the 1099-S included in the pass-through charges under the NJLTIRB Rate Manual?

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No, it is not.


Federal law prohibits separately charging any customer for filing the required 1099-S [26 USC 6045(e)].


You should not feel that you are not being compensated for filing the 1099-S. The filed rate for settlement services takes into account all of the services that are performed at settlement including but not limited to the filing of the 1099-S. This coupled with the fact that it is not permissible under New Jersey law to add the cost of complying with the information reporting requirement to the filed charge clearly leads to the conclusion that you cannot charge separately for filing the 1099-S.


As always, feel free to address any questions to a member of our staff.  
ALLSTATE Title Agency is a full service Title Insurance Company serving Ocean County, NJ and surrounding areas.

ALLSTATE TITLE AGENCY     609-489-0442

The information provided is for informational purposes only, courtesy of Old Republic National Title Insurance Company, and should not be used or relied upon for any other purpose. This information is not intended nor should it be construed as providing legal advice.  Always seek the advice of competent counsel with any questions you may have regarding any legal issue.