My client received a 1099 Misc w/ $29k in box #7. It is from the US Department of Agriculture National Finance Center. She was involved in a Wetland Reserve Program and they used her SS#. She never received the money. She turned it over to an excavator and he received every penny. She has an invoice from the excavator and a CCC-36 from the US Department of Agriculture "Assignment of Payment" with the same amount.
The CCC-36 has the excavator's name, address and tax ID # along with the amount. Should I put the $29K on her Schedule C and then put $29k as an expense? I need to show it as a wash, but I'm unsure how it should be labeled, etc. Line 27 schedule C; Other expenses? What description? I'm e-filing her return, so I won't be sending any attachments. Thanks in advance.
The CCC-36 has the excavator's name, address and tax ID # along with the amount. Should I put the $29K on her Schedule C and then put $29k as an expense? I need to show it as a wash, but I'm unsure how it should be labeled, etc. Line 27 schedule C; Other expenses? What description? I'm e-filing her return, so I won't be sending any attachments. Thanks in advance.
Comment