Without A 1099

[SueBaby]

I already transmitted this client and he calls up today and said he 'forgot' he paid a worker over $18,000. He did not give worker a 1099 at all for this.

Do I amend it and put it on Sch C under contract labor since no 1099? It is too late for me to do a 1099 and I don't want the late fees and every thing that goes with it either.

Don't know how someone can "forget" over $18,000! THANKS

[BP.]

I would amend, deduct, and send the 1099.

[JohnH]

Why care if there's a penalty in this situation?
Tell the client there may be a $50 penalty. If it's assessed, your fee to request an abatement will be $150 - his choice.

[fliszt]

Do you

have the worker's s/s# and address for the 1099? If so, then the "error" sounds legit.
Larry

[SueBaby]

have the worker's s/s# and address for the 1099? If so, then the "error" sounds legit.
Larry

Yes he gave it to me. He thought you could do it without a 1099. duh

[AZ-Tax]

Suebaby....mandate your client hires you to do his books.

At least your client remember, I had a client whose memory was triggered with a letter from the IRS stating at least 5 - 1099's (income) my client forgot about reporting.

[taxea]

You don't have to amend. Just correct the original return, print it for filing and write "CORRECTED RETURN" across the top. If it is filed before 4/15 the IRS/State will accept it as the original. I would, however, be sure that the worker and the IRS gets a 1099. Otherwise how is the client going to justify the expense. taxea

[ChEAr$]

Actually

Yes he gave it to me. He thought you could do it without a 1099. duh

you can do it without a 1099 being issued. BUT.........

You should insist on making out a 1099 misc and having him file it even though late.
any penalty he may have to pay will be worth it for the tax deduction.

[ChEAr$]

"corrected return"

You don't have to amend. Just correct the original return, print it for filing and write "CORRECTED RETURN" across the top. If it is filed before 4/15 the IRS/State will accept it as the original. I would, however, be sure that the worker and the IRS gets a 1099. Otherwise how is the client going to justify the expense. taxea

Actually that is what we used to do, file a "corrected return". But IRS doesn't really recognize that term officially any longer. They want an amended return using 1040X.

Yes I know, if you go this route, the will process it, since it's a whole lot cheaper just to
do that instead of writing back informing taxpayer the correct procedure.

[taxea]

You can't file an amended return until after 4/15. The corrected return is acceptable to the IRS before 4/15. Did you speak with someone from the preparer hotline office about this? Where did you get the info that they won't accept a corrected return? taxea

[WhiteOleander]

You can't file an amended return until after 4/15. The corrected return is acceptable to the IRS before 4/15. Did you speak with someone from the preparer hotline office about this? Where did you get the info that they won't accept a corrected return? taxea

I have filed many 1040Xs before 4/15. Each year I always have at least one client that needs something changed and wants it done before 4/15 so they won't have interest or penalties. I have never had the IRS refuse one.

[SueBaby]

I have filed many 1040Xs before 4/15. Each year I always have at least one client that needs something changed and wants it done before 4/15 so they won't have interest or penalties. I have never had the IRS refuse one.

I have too. That is what I planned to do with this one too.

[Jesse]

From last years discussion

http://www.thetaxbook.com/forums/showthread.php?t=7425&highlight=amended+1040x+corrected+return

Some interesting discussion on the same topic of amended/corrected returns.

[ChEAr$]

Well of course you may

You can't file an amended return until after 4/15. The corrected return is acceptable to the IRS before 4/15. Did you speak with someone from the preparer hotline office about this? Where did you get the info that they won't accept a corrected return? taxea

file a 1040x any time after the original return has been filed (and accepted, since I prefer to make sure of figures to be changed.)

My information was that "corrected returns" are no longer in vogue, and changes should properly be on a 1040x. However, as I stated above, they won't send one back; too much
trouble.