Certified Regulatory Compliance Manager (CRCM) — Question 294

By which date must an interest reporting statement be sent to the borrower's last known address?

Answer options

• A. January 15 of the year following the year the interest is paid
• B. January 31 of the year following the year the interest is paid
• C. February 28 of the year following the year the interest is paid
• D. March 1 of the year following the year the interest is paid

Correct answer: B

Explanation

The correct answer is B, as the IRS requires that interest reporting statements be mailed by January 31 of the year following the payment of interest. Options A, C, and D are incorrect as they do not meet the IRS deadline for sending these statements.