finders fee

  • Fees paid an individual for finding or establishing the contact that makes a financial transaction possible; fees paid to correspondents of an insurance company for securing mortgage loans, etc. A large borrower may also pay a finders fee to an individual that knows of an insurance company that is willing, able, and does lend funds to the borrower.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).