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Exam CRCM topic 1 question 317 discussion

Actual exam question from ABA's CRCM
Question #: 317
Topic #: 1
[All CRCM Questions]

By what date must the bank send the borrower a statement in connection with an information return on foreclosed or abandoned property?

  • A. January 15 of the year following the year of the foreclosure or abandonment
  • B. January 31 of the year following the year of the foreclosure or abandonment
  • C. February 28 of the year following the year of the foreclosure or abandonment
  • D. March 1 of the year following the year of the foreclosure or abandonment
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Suggested Answer: B 🗳️

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Cam22
3 months, 4 weeks ago
Selected Answer: B
For information returns related to foreclosed or abandoned property, such as Form 1099-A (Acquisition or Abandonment of Secured Property) or Form 1099-C (Cancellation of Debt), the IRS requires that the lender send the borrower a statement by January 31 of the year following the calendar year in which the lender acquires an interest in the property (in the case of foreclosure) or knows or has reason to know that the property was abandoned. This deadline ensures that borrowers have the necessary information to include on their tax returns for that year.
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