A February 9, 2007 Internal Revenue Service ruling states that “a payment or credit at closing from [Broker] represents an adjustment to the purchase price of the home and generally is not includible in a purchaser’s gross income.” While it would be helpful, providing further clarification on this issue does not appear to be on the top of the IRS’s list of priorities.
One thing is clear, however: We will not report your commission refunds to the IRS and you will not receive a taxpayer Form 1099 from us.
