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Change in Reporting Requirements of Timber Sales
– September 15, 2009
The reporting requirements for lump-sum timber sales occurring on or after May 28, 2009 have changed. The Internal Revenue Code section 6045(e)(2) now requires the purchaser of standing timber to report the sale to the IRS using Form 1099-S (Proceeds from Real Estate Transactions). THe Form 1099-S must be furnished to the seller and to the IRS no later than January 31 of the year after the sale occurs. There was no change to reporting requirements for sales of standing timber under pay-as-cut or contingent payment arrangements as stated in IRC sec. 6050N.
Liz Killough
Tax Department
318.429.2061
ekillough@hmvcpa.com
Liz is a senior in our tax department.