To whom must the escrow officer or closing agent provide the sales price and seller's social security number?

The sales price and the seller's social security number are required to be reported to the IRS. This is part of the IRS regulation that mandates the documentation of real estate transactions for the purpose of tax reporting. The purpose of gathering this information is to track the income that sellers may be realizing from the sale of their property, which is significant for income tax calculation.

When property is sold, the IRS expects to be informed through filing forms like the 1099-S, which requires information including the sales price and the seller's identifying details such as their social security number. This reporting helps ensure compliance with tax laws regarding capital gains and other relevant taxation issues related to real estate transactions.

While the other entities mentioned in the choices have their own roles in real estate transactions, they do not have the same direct obligation to report these specific details to the IRS as the closing agent or escrow officer does. The Department of Real Estate, for instance, primarily oversees licensing and regulatory compliance within the real estate sector rather than tax reporting. The buyer's lender and the title company also play critical roles in transactions, but their focus is usually more on securing financing and ensuring clear title, rather than collecting and reporting tax-related information.