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1099 reporting of money in an escrow account
December 1, 2022
Q. An amount is deposited into an escrow account during an acquisition of a business. Who is responsible to report the escrow amount to the IRS and when? Should it be considered part of the purchase price and included in the 1099 and reported by the buyer, or should it become taxable when paid out by the escrow agent and reported by the escrow agent at that time?
A.
(Answered by IOFM's third-party tax experts)
In general no Form 1099-MISC would be filed to report payment for acquisition of a…
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