Broker paying 1099 on Title CDA

[Dallas Broker]

I recently came across an interesting question on intuit from a broker. Just wondering how other brokers across different states approached 1099 tax time.

Here is the question...

Do I need to give a 1099 to real estate agents when the title company cuts a check directly to the agents and I only receive a check for the broker's percentage? The title company asks for a commission disbursement and they cut a check directly to the agent for their part and a check to me for my portion. As I said I've been given mixed responses, including from accountants, and I don't know what most brokers do in this situation.

[Micheal Pannell Realtor]

What we do is we get a copy of all the check they are paid from the title company. This way we can send out a 1099. We got this from a remax agent. Cause the irs can still hold you to the money earned by your agents if they catch it.