Errors on 1098A Mortgage Statements

[raven1818]

Is is my imagination or just the times we live in but I am noticing there are now errors on the mortgage interest and property tax statements that the banks are publishing. I know we're all in a rush but during this past week I have found vast differences between what the clients have paid towards their mortgages and what is being reported. I don't know if it is because the banks have "fired" everyone who use to verify this information or because so many people are "behind" in their payments. It sure makes a difference when a client who normally receives a refund and now ends up owing taxes. I have informed my clients to "re-verify" these statements--one just called me--and stated that because his loan was sold a "second" time four of his payments got "lost" by the servicer.

Also, what up with ATX keeping up with the fees we charge? Why? They are gathering this information from our efiles and for the first time when I checked on the ATX website for client refund information--it was there. Someone else mention it the other day on this board--I think the board needs to take this up?

[Pacun]

When banks sell the mortgage to another bank, most likely the TP will receive 2 1098A. If they only bring one, I ask them to call the other bank to get the interest mortgage and taxes paid on the property. I also instruct them to ask for a copy of the 1098A because they didn't receive it in the mail. Sometimes, people just leave them at home and don't bring it to the office.

"Also, whats up with ATX keeping up with the fees we charge?"

Where can I check that?

[raven1818]

When you go into "MY ATX" support for the e-file information, after you bring up a particular client's e-file status screen, you will note on the left hand side our "preparation fees" which is taken directly from your billing statement. I always thought this information was confidential. Perhaps maybe the only way to keep prying eyes out is not billing the client until after the e-file is sent and received back.

[GeorgeM]

When you go into "MY ATX" support for the e-file information, after you bring up a particular client's e-file status screen, you will note on the left hand side our "preparation fees" which is taken directly from your billing statement. I always thought this information was confidential. Perhaps maybe the only way to keep prying eyes out is not billing the client until after the e-file is sent and received back.

One way to avoid that from happening, is to print the invoice out, and then delete it before you make the e-file record.

A few years back they had a survey asking for amounts billed, and I don't believe anyone gave it to them.

[TAXBILLY]

Can't remember the last time I got a corrected one but I've had three already this season, all from the Bank Of America.

taxbilly

[fredazcpa]

One way to avoid that from happening, is to print the invoice out, and then delete it before you make the e-file record.

A few years back they had a survey asking for amounts billed, and I don't believe anyone gave it to them.

thank you for the heads up, that is none of their #$%^&* business. I will be billing, print out the bill, then delete from file before sending efile in.

[JohnH]

It's always a good idea to spot-check the current year's mortgage interest against the previous year. Even better, check the change in the interest deduction going back two years. There will be a discernible pattern unless there's been a significant principal payment or a change in the rate. This also helps flush out a refi that the client forgot to mention, in which case there may be points to amortize and/or unamortized points to write off from a previous refi. As Pacun & Taxbilly pointed out, the opportunity to mess this up increases with the number of mortgages being sold, takeovers, upheaval in the industry, and certain lenders...