@B_Erlandson wrote:
But since she was issued one (with only half of the actual sale price listed), it may be in our better interest to simply file a state and federal return for the 1099-S.
Yes, the IRS has a matching program so a return should be filed and there doesn't appear to be much of a downside in reporting the entire sales proceeds of $225,000 since all of it will fall within the home sale (Section 121) exclusion.
