DBSI completed and mailed all IRS 1099 and 1098 tax reports to Investors on or before January 30th, 2009. Since that time, we have received several emails regarding information provided to Investors on their 1099 tax reports and the rent calculations which reflect a higher reported amount than the investor was expecting.
For clarification, DBSI is required by the IRS to report both rental income paid to investors as well as all ratable debt service payments that DBSI made on their behalf on the 1099 tax report during 2008.
If you received interest payments during 2008, DBSI will also provide you with a form 1098 which will report this interest amount. 1098s were sent separately and should arrive at your address of record a day or two behind the 1099s. Investors should consult their tax professional regarding the deductibility of interest expense reported.
In a few instances, DBSI has determined that some 1099s included income for distributions that were made to investors, but were presented to the bank after DBSI filed for bankruptcy and were subsequently rejected. DBSI will be reissuing corrected 1099s to investors impacted in these instances to reflect these unsettled payments. DBSI is aware of these investors and will be reissuing 1099s with no additional action required by the investor.
