Start Your New Year off on the Right Foot
The end-of-year holiday festivities are always followed by the inevitable reality that tax season is here. While many dread this process, there is a pain free solution. With TMO’s efficient batch processing for lenders and borrowers, your team can head into tax season calm, compliant, and in control.
NEW! TIN Matching in the TMO Platform
This year we’re thrilled to launch TIN matching to enhance the filing process by further confirming matching between 1) TIN type, 2) TIN number, and 3) Borrower Name. All too frequently, avoidable penalties are charged by the IRS due to these critical data points not being in alignment. But by continually reviewing that these details are accurate, TMO users will be able to file their taxes knowing that the data they are submitting is cleaner and more likely to avoid this common source of IRS penalties. If an issue arises, you’ll be alerted to take the appropriate action to help avoid these fees, which can quickly stack up.
Getting Started with TMO’s Tax Filing Solutions
With TMO, efficiency never comes at the expense of accuracy. Whether you’re processing payments, generating notices, or sending lender remittances, being able to bulk process routine tasks is critical, while trusting that the calculations are correct every time. This not only frees up your team’s bandwidth; it also reduces the risk of human error that comes with handling items one by one.
Fortunately, this same philosophy applies to our Tax filing system. Here we’ll break down some of the keys to success for a stress-free process.
Quick note: Nothing here is legal or tax advice. Always confirm filing rules and tax treatment with your CPA, tax advisor, or the IRS/CRA.
Reviewing Loan Data
When the time comes to begin reviewing tax details, the process is easier with TMO retaining line-item payment application data, including allocations with principal, interest, fees, and more. Verifying the data has never been easier, since importing this information will pull directly from the loan’s payment history for the calendar year.
Bulk importing tax data, paired with flexible filters, lets you review the full servicing portfolio or focus on specific segments. This efficient import process consolidates the relevant loan data, eliminating the scattered process of extracting these details from multiple systems and records.
Issuing Adjustments
A lot can change over the course of a year. Loans may transfer ownership; servicing scenarios can become more complex, interest may be split, and payment patterns can shift. When year-end reporting arrives, capturing these details accurately is critical, because each of these variables directly affects the reportable amounts.
Should any corrections be necessary to a loan’s figures, adjustments can be added to either taxable or tax-free amounts of a loan. For questions about how an adjustment should be treated for tax purposes, please consult your tax advisor.
Submitting with a Seamless Process
The final step in TMO’s tax filing process is transmitting your tax data in just a few clicks, directly to the IRS. By this point, loan data has been imported, reviewed, and corrected, so you can submit with confidence in the numbers. Once this is completed, a brief processing period will occur to generate the necessary files.
Putting it all Together
There’s a reason that hundreds of TMO clients return to our tax filing services year after year: if you’ve ever filed taxes, you know the process can be stressful, time-consuming, and confusing. With TMO, you get a streamlined workflow designed to help you stay compliant and reduce the risk of penalties, and once you’ve used it, it’s hard to imagine going back to the old way.
Get started with The Mortgage Office now, so you’re ready as deadlines hit. Our tax tools help lenders streamline form generation, reduce manual work, and keep investor and borrower reporting on track. Taxes may be unavoidable, but TMO helps you ring in the new year with those healthy resolutions, like less stress and more time devoted to more worthwhile activities.
Explore TMO’s New Feature: TIN Matching
For additional resources watch TMO’s Tax Webinar replay to learn about TIN matching, reporting workflows, and best practices help support accurate year-end filings.