Comments on: Ask the taxgirl: Incorrect 1099

By: Larry

Larry — Fri, 15 May 2009 22:06:44 +0000

You might want to file an amended return for 2007. Include Schedule C. Report in Part I of Schedule C as gross income the amount on the Form 1099. Report in Part II of Schedule C the amount that represents these reimbursed expenses. At the bottom of the schedule the expenses will exactly offset the reported income, thereby giving the proper result of $0 income.

Of course, Schedule C can be a red flag, and the IRS might want to investigate that the expenses were legitimate. In that vein it would have been easier to avoid the Form 1099 situation in the first place. But once there is an outstanding Form 1099, it has to be dealt with and cannot simply be ignored.

By: Terry

Terry — Wed, 04 Mar 2009 21:18:04 +0000

Tax Girl! Great site, great service! I hope you can help me.
In January 2008 I received a 1099 form from a company. I should NOT have received one at all; although I did receive payments from them, the payments were all for reimbursement, not income. I notified the company, and filed minus the mistaken 1099. Then I forgot about it for the rest of 2008.
Now, I received a bill from the IRS about that 1099 form, notifying me that I owe $2300 in tax and penalties since I forgot to include it on my return for 2007.
I contacted the CPA for the company, asking him to please correct this information with the IRS. He told me that it was too late – he was unable to change anything now. So I was stuck with it.
Is he correct? It seems that the IRS would always have methods by which a company could correct errors, regardless of when they are discovered.

Help??

By: Mory

Mory — Thu, 17 Apr 2008 17:49:22 +0000

At this point you should just file your return with the amount you think is correct. If you had more time like back in March I would have advised you to contact the IRS at (800) 829-1040 informing them that you received the 1099 and disagree with the amount. Tell them that you’ve tried to resolve the situation but have been unable.
In addition, you need to tell the IRS that you to complete a Form 4598, “Form W-2 or 1099 Not Received or Incorrect”. The form is for IRS’s use only so you won’t find it on IRS.gov. You’ll need to give the IRS all of the facts the payer information from the 1099 and the details of how you arrived at your figures. The IRS will send the complaint form to the payer, who has 10 days to respond. A copy will also be sent to you. Assuming everything works as it should, you’ll receive a corrected 1099 from the payer. If you don’t receive a satisfactory response by the due date of your return, include the amount that you believe to be correct on your return (line 21) and attach the Form 4598 and an explanation.

By: Kelly

Kelly — Thu, 17 Apr 2008 13:11:17 +0000

Unfortunately, I don’t give out referrals over the web site, sorry about that.
For more info about the site, be sure and read http://www.taxgirl.com/about/ and http://www.taxgirl.com/official-comment-policy/ – as well as the other info in the sidebar.
Thanks.

By: john ornelas

john ornelas — Thu, 17 Apr 2008 13:02:03 +0000

I LIVE IN BELLFLOWER AND I NEED SOME ONE ONE TO HELP ME WITH BACK TAX’ES A.S.A.P..ACN YOU SEND ME SOME ONE OR HAVE SOME ONE E-MAIL ME