Last month I decided to get out of a real estate contract. The seller was not pleased at all and required additional monetary compensation to release me from the contract. I paid him (earnest money was only $4000) $20,000 resulting in all parties being released.
I want to insure that the IRS has documentation and is made aware of this additional $20,000 he received as income.
I have information that he had mentioned that he had no plans to claim this as income. He said that the IRS has no record of this tied to his SSN.
What is the recommended procedure I should take to to inform the IRS of this transaction? I do not have his SSN.
PSUinVA from Virginia

