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1098 Mortgage Interest Filing Enforcement Cases

Purpose of bulletin

To advise staff that approximately 20,000 1098 mortgage interest filing enforcement cases for 2009 and 2010 tax years will be closed, withdrawn, or abated.

Background

The Filing Enforcement Section (FES) uses form 1098 mortgage interest payment information to identify non-filers who are not identified as wage earners or license holders. Individuals who had sufficient income to make monthly mortgage payments may be required to file a tax return.

In October 2011, FES increased the rate used to estimate total income based on the reported mortgage interest paid, resulting in an increase in filing enforcement (FE) notices, and increased contacts by taxpayers. It was determined that some of the individuals did not have a filing requirement.

To avoid potential erroneous contacts, FES to only include individuals with reported mortgage interest more than *******. The change will impact FEs issued for the 2009, 2010, and future tax years.

FE cases closed, withdrawn, or abated

FES has identified the following cases for the 2009 and 2010 tax years:

  • 5,175 INC cases will be closed
  • 8,935 cases in TI with a pending Notice of Proposed Assessment (NPA) will be withdrawn
  • 5,765 cases in TI with a final NPA will be abated

Taxpayer inquiries

Refer all taxpayer inquires to the 1098 Unit at:

  • 866.204.7902
  • 916.845-7060 if outside the United States.