Generes & Associates, a nationwide title, settlement and escrow service provider based in New Orleans, reported it has saved clients $438,480 in potential tax-related fines so far in 2023.
Filing incomplete or inaccurate 1099-S forms with the IRS can lead to significant penalties. Settlement agents face escalating fines for late or incorrect filings, ranging from $60 to $630 per file, depending on the timing and nature of the error.
For forms submitted with the wrong taxpayer identification number (TIN), fines can be up to $280 per file.
“We understand that life happens, and deadlines get missed,” Eric Generes, president and chief operating officer at Generes & Associates, said in a release. “We can support our clients even when they’re playing catch-up. Our 1099-S Service provides invaluable assistance to eliminate errors and minimize potential fines.”
Generes & Associates said it processed 15,680 Tax IDs in 2023 for its clients, discovering an error rate of approximately 10 percent. With 1,566 errors across all of the 1099-S forms processed and a maximum penalty by the IRS of $280 each, this amounted to the reported client savings figure of $438,480.
Leaders also specified the company can ensure TINs and names match correctly to avoid filing errors as well as create and file the return forms with the IRS on behalf of i clients.
“We pride ourselves on our core value of ‘helping first,’ meaning our No. 1 priority is to solve problems for our clients,” Generes added. “Filing these forms is a constant thorn in the side of many settlement professionals, who often don’t have the time or capacity to do these on their own. Our 1099-S Service remains available throughout the year, offering a lifeline to settlement agents seeking efficient and compliant tax reporting solutions.”