BofA Scoffs At Suit Over IRS Mortgage Interest Reporting

Law360, New York (September 6, 2012, 1:44 PM EDT) -- Bank of America NA on Wednesday asked a California federal judge to toss a proposed class action accusing the lender of underreporting deferred-interest mortgage payments to the Internal Revenue Service, suggesting a homeowner is alleging bogus contract violations because he didn’t do his taxes properly.

The complaint from San Diego resident Richard Horn says BofA improperly converted deferred interest to principal when he made minimum monthly payments, resulting in less interest being reported on IRS Form 1098 and reducing Horn’s mortgage interest deduction on a rental...
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