IRS Form 1098 must be used by those who, in their business, receive $600 of mortgage interest or more during the course of a calendar year. Those who receive this amount or more for a personal residence or for a former personal residence do not file IRS Form 1098. For the purposes of filing IRS Form 1098, the payment of points must also be included along with and added to mortgage interest. Penalties for late filing vary according to how late one files with the minimum fines ranging from $30 to $100 and maximums ranging from $250,000 to over $500,000.