By which date must an interest reporting statement be sent to the borrower’s last known address?

The Internal Revenue Service (IRS) sets specific deadlines for furnishing information returns to recipients. For Form 1098, Mortgage Interest Statement, the lender or mortgage servicer is required to provide a copy of the statement to the borrower (payor) by January 31 of the year following the calendar year in which the mortgage interest was received. This deadline ensures that taxpayers have the necessary information in a timely manner to prepare their individual income tax returns.

A. January 15 is too early; the regulations provide until the end of the month for the statement to be furnished to the borrower.
C. February 28 is the deadline for filing paper copies of Form 1098 with the IRS, not for furnishing the statement to the borrower.
D. March 1 is after the deadline for both furnishing the statement to the borrower and filing paper copies with the IRS.

1. Internal Revenue Service. (2024). General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G). Page 21, "Filing and Furnishing Information Returns," Section M, "When To File and Furnish." The table clearly states the due date to furnish Copy B to the recipient for Form 1098 is January 31.

2. U.S. Government Publishing Office. (2023). 26 CFR § 1.6050H-2 - Time, form, and manner of reporting. Section (a)(3) states that the statement must be furnished to the payor on or before January 31 of the year following the calendar year in which the interest is received.