To whom does HUD issue form 1099-MISC for HUD Home sales?

HUD issues Internal Revenue Service (IRS) Form 1099-MISC, Miscellaneous Income, to the Real Estate Brokerage Firm listed in the P260 system for the sale of HUD Single Family real estate owned (REO) properties.
 

The Real Estate Brokerage Firm is responsible for issuing 1099's (or the appropriate tax form) to its individual Selling Brokers, Listing Brokers, and Real Estate Agents.
 
HUD sends an email to the contact person on file in P260 for the Real Estate Brokerage Firm. The email  provides a detailed listing of the HUD Single Family homes sold and the associated commissions paid by HUD.
 
Real Estate Agents that were selling agents in HUD Single Family home transactions must contact their Real Estate Brokerage Firm for questions about 1099's or tax forms that are to be issued to them by their sponsoring Real Estate Brokerage Firm.

Note: HUD issues Form 1099-MISC to corporations as stipulated in the Instructions for Form 1099-MISC.  The instruction classifies payments by a federal executive agency for services (vendors) as reportable payments to corporations.
 
For additional information about Form 1099-MISC associated with the sale of HUD Single Family REO properties, please contact the FHA Resource Center by calling 1-800-225-5342 or by email at answers@hud.gov. All inquiries will be responded to in a timely fashion.
 
HUD does not provide tax advice.


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02523