2025 Tax Webinar FAQ's

Q: How much of the 1098/1099 process is applicable to T5s? 

A: This is specific to our 1098/1099 processing built into TMO where we print and mail and e-file with the IRS.You can contact your account manager directly for assistance with the T5’s or any other CRA needs. 

Q: Does the one click option include filing the 1096?

A: No, this form is typically used for transmitting paper forms. We E-File. From the IRS: “Use Form 1096 to transmit paper Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G to the Internal Revenue Service. Do not use this form to transmit electronically. 

Q: Last year, we were told by several vendors that they no longer sell the 1099 and 1098 forms that are compatible with TMO Pro format.  We were literally unable to find forms that we could print.  Has that changed this year? 

A: In the bottom-left corner of the TMO PRO menu, go to Order Supplies > Year End Supplies. From there, you can order forms that are fully compatible with printing from TMO Pro. 

Q: Are we required to send tax forms for DSCR loans issued to LLCs? 

A: We can’t provide tax advice here. You should consult your tax professional. 

Q:  Do you know the cost difference between One-Click and E-File only? 

A: E-File is $1.99 per record. Print and mail is an additional $2.49 per record 

Q: TMO cannot mail to borrowers as well, only the IRS? 

A: E-File is to the IRS, Print+Mail will send a form to your borrower in the mail. 

Q: Will we be sent the full fee schedule showing discounted rates and full rates? 

A: If you reach out to your account manager we can provide that to you. 

Q: Is there a means to exclude certain loans other than individually clicking on Notices and Forms>Tax Reporting? Is there a way to upload at the loan number level to uncheck the tax reporting box? 

A: When you run the Recipients Import for 1098/1099 generation, the system gives you a preview of all eligible loans. At that stage, you can manually uncheck or deselect any loans you want to exclude from the tax filing batch. 

Q: Are these 1098 forms only for use to send to the IRS for e-filing? we typically only send interest statements to our borrowers, and they use that information for their taxes. 

A: We can’t provide tax advise, but the IRS typically requires that a lender mail and e-file a 1098 for any reportable interest collected from them during a tax year. 

Q: Thanks, but is there a way to set via an import. We have a large number of loan and unclicking each loan will be difficult. 

A: You can use categories to filter more broadly. 

Q: You said the reportable amount is the amount at the bottom, if you use the construction module and have a finance charge each month, is it reporting the "paid" amount or the "financed" amount? 

A: Typically it’s going to be the amount paid. 

Q: what if there are multiple addresses on one loan? 

A: The main borrower address will be reflected by default, but if there is a primary property securing the loan, TMO can reflect both the borrower address and primary property if they’ll be different. The property will be indicated by the Primary Property box being checked on the property itself. 

Q: Can the co-borrower be added to the 1098? 

A: It’s best to consult with a tax specialist to get the definitive answer. The system can allow for multiple borrowers to be added to the borrower field, but it’s worthwhile to confirm with a tax specialist that this is appropriate for you. 

Q: For software development:  please create a field that indicates when alternate tax info has been unsynchronized, without having to click on the Alternate Tax Info Link.  It would be really helpful to know this as we are auditing our file data and not need to click on over 300 of this links! 

A: Thanks for the feedback! You can submit a feature request in TMO Pro in the bottom left corner. 

Q: What is best practices to handle loans where the property address is NOT the same as the mailing address? 

A: The Property address can be a different address than the mailing address, and those details are established directly on the property level. 

Q: I have a few loans that have multiple lenders, how is that addressed? 

A: If a loan has multiple lenders, that’s fully supported. As long as each individual lender is configured under the loan’s Funding tab, TMO will track their respective interest received. Each lender will then be issued their own 1099 reflecting their share of the interest for the year. 

Q: What if the customer's mailing address is a PO Box? We have several. 

A: This is supported with Alternate Tax information option from within the loan, where a different address can be added. 

Q: We have modification fees and the research for 1099 and 1098 shows that would be considered interest because it’s to continue the amount borrowed. Can the 1099/1098 amount be pulled from that category. 

A: Within the loan history, adjustments can be created to impact “Other Taxable” or “Other Tax Free” and this is usually where corrections can be made so the appropriate amount is being reported. For California loans, TMO does have the DRE system where some of this reporting can also be configured. 

Q: When I go through to test it out. The import option only allows importing for 2024 reporting. How do I change that to 2025 

A: 2025 will be available when we are in the new year, since the year isn’t over yet. 

Q: Can I add a manual import of a loan that is not in TMO? Some of my loans were paid in full prior to the change to TMO and they were not included in the data conversion. 

A: Yes, you can do that using the manual 1098/1099 process Ramiro showed. 

Q: How are corrections handled after final transmissions? 

A: We can handle certain situations for corrections if you need to submit a new batch with changes up to the e-filing deadline (just before 3/31). We don’t have any functionality to file corrected tax filings though formally with the IRS. You would need to work with your CPA for that. 

Q: Once we transmit all files, how do they get attached to each individual file so view later? 

A: You have the option for these to attach directly to the loan or lender files, where they can be published to the online portals as well.  

Q:  How are corrected forms handled, if we discover a data error later in the year and need to do a CORRECTED form? 

A: We can’t file a formal corrected form with the IRS, but if you catch it before transmission to the IRS (typically just before the e-file deadline of 3/31) we can work with you to submit a new corrected batch. Please contact your Account Manager if this happens. 

Q: Can you show us how to pull up the statement of account again without going to the task screen? 

A: You can print statements from the all lenders grid.

Q: Will you cover obtaining K-1 information from our Pool Servicing for our investor/partners? 

A: The K-1 reporting is available within the Pool Servicing Tasks and Reports section of TMO.