I have a mortgage with another person. The mortgage company sent a single Form 1098 with the full interest paid to one person (me), which is typical for banks to do. The IRS says that if there is a single 1098 with more than one borrower, than the interest should be divided appropriately between the parties for the Schedule A deduction, which should show the interest each party paid on their return. That's all fine. It also says that a note of explanation ("see attached") should be attached explaining why the mortgage interest listed on each parties' tax return doesn't exactly match a
1098. That's easy to do on paper, but can such a note of explanation be sent with an efile? Or is that impossible, meaning a paper return is required in such a situation? I'd find it hard to believe that efiling can't support such a simple memo attachment if they're trying to encourage efiling, but I can't find how to do it. Thanks! Reference: IRS publication 936
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