If the lender is subject to the mortgage interest reporting requirement, which of the following actions is NOT required?
If the lender is subject to the mortgage interest reporting requirement, which of the following actions is NOT required?
The lender must file an information return with the IRS, report the amount of interest and points on the information return, and send a statement to the borrower. However, the lender is not required to report the loan balance as of December 31 of the year preceding the year the report is filed. Reporting the loan balance is not part of the mortgage interest reporting requirements.
lenders are not required to report the loan balance as of December 31 of the year preceding the year the report is filed (C) as part of the mortgage interest reporting requirements. The critical elements to report are the amounts of interest (and points, if applicable) received during the year. While the remaining balance of the loan might be of interest to the borrower and often is included on the statement sent to the borrower for informational purposes, it is not a requirement for the IRS's mortgage interest reporting purposes.