According to loan broker regulations, must wages and/or commissions be reported on IRS form W2 or may IRS form 1099 be used for a loan broker?

Published 08/12/2009 12:18 PM   |    Updated 08/12/2009 12:18 PM
According to loan broker regulations, must wages and/or commissions be reported on IRS form W2 or may IRS form 1099 be used for a loan broker?
Both the Loan Broker Act and the rules provide that originators are "employees" of the loan broker licensee. Thus, the Secretary of State, Securities Division, considers the licensee responsible for the actions of its originators. Tax treatment of originators is beyond the jurisdiction of the Secretary of State, Securities Division. The licensee may wish to refer questions on tax treatment to its tax preparer.
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