I refinanced my Seller financed- financed mortgage. No 1098 but a 1099-Int pink form. That confused the IRS and one year I received a $5000:- balance due, penalties and interest. Had to write a letter to refute all charges! IRS removed the charges, without an explanation. Of course I was close to fainting opening that letter..
When I first had the Seller-financed loan in 2016 I had no problem filling in the information and it ended up on Schedule A , with all of the information for the lender and continued until 2020.
Now I am getting all tangled up. There is a Form 1098 for the new loan. Then there is the pink Form 1099-Int and the two do not get along. The worksheets for Mortgage interest get confusing between the Form 1098 information and the 1099-Int. Would be very grateful if someone could guide me through this.
Thank you very much!
