New Year, New You, But Your 1099s Will Soon Be Overdue
1099 season is upon us, and title and settlement professionals are feeling the pressure. Despite your 2022 New Year’s Resolution, you and your team have again waited until now to start the 1099-S filing process. You’re also once again three months behind on your 3-way reconciliations, and you know all too well the flurry of activity needed to complete your filings while somehow still balancing day-to-day operations.
Unfortunately, this kind of frantic scramble opens you up to a host of possible errors on your 1099s:
Missed or partial tax identification numbers
Bad forwarding addresses
Logging incorrect payment amounts
These types of mistakes can cost you. Literally. The IRS levies fines and penalties on settlement agents who don’t report transactions on Form 1099 or who report incorrect Forms 1099.
Oh, and those account reconciliations you missed? In some cases, that might mean waving bye-bye to your ALTA Best Practices certification or even your title insurance agency status.
You know all of this, of course. Yet, where to start?
You’re probably already juggling too much
Analyzing liens, maps, public records, and leases. Conducting property search. Communicating with the agents, lenders, and attorneys. Preparing the closing documents. Responding to emails. Answering the phone. Disbursing funds. Figuring out the ideal temperature for the office thermostat. Yeah, we know your plate is full.
These things aren’t your specialty
We’re also guessing accounting isn’t in your job description, and we doubt it’s one of your favorite hobbies. That heavy workload means you're wearing a lot of hats. And no, we’re not talking about that oversized cowboy hat in the back of your closet or the drink dispensing helmet you got in college, either.
You’re costing yourself money (and probably sanity)
Your monthly reconciliations and annual 1099 filings suck up a lot of valuable time better spent making money and advancing your business. That means you’re likely working more hours to get those important things done and seething with rage every time you hear someone mention the phrase “work-life balance.”
So, to summarize: You’re too busy. You likely have less staff than last year. All of this is too complicated, and it doesn’t generate revenue. But it all still needs to happen!
Wait, are you sweating? Are those heart palpitations normal?
Why put yourself through this?
Generes & Associates has been providing escrow accounting and 1099 services for title, settlement and escrow professionals for three decades now. We’ve seen it all, done it all and dealt with it all when it comes to helping title agents with financial and accounting services. When you work with us, you’ve got our undivided focus, ensuring your books are managed quickly, efficiently and accurately. That way, you can focus on the higher-leverage work that brings in the dough!
With our First Trust Accounting Services, Generes & Associate will provide escrow reconciliation services, both monthly and daily, for title agents and title attorneys. We can also take the burden of your 1099-S filings from you along with a TIN (Taxpayer Identification Number) matching services for complete peace of mind.
The late, great John Wooden once said, “When you hurry, you're more apt to make mistakes. But you have to be quick. If you're not quick, you can't get things done.”
Coach obviously never worked in the settlement industry. But he was right about the need to be quick without being in a hurry.
So, if you need help getting things done this season, we can help you avoid the hurry (and all the mistakes that come along with it), so you can get back to doing what you do best!