IRS Wage and Income

[S T]

Has anyone had the experience, that if you order the Wage and Income Transcripts on a client for a prior year, a particular 1099 INT does NOT show?? But the client actually produces a 1099 INT.

I have 3 years to prepare on this t/p and utilizing the sources to access Wage and Income records (or Client transcript) , and have found that one of the banking institutions is NOT showing in all 3 years, but the t/p has a 1099 INT in his possession for one of the years and is ordering duplicates for the other years. A 1099 INT should appear in each of the years for 2007 and 2008 and possibly 2009.

Seems very Strange to Me, but my "eyes" have seen the 2007 1099 INT and all is correct on the form. Nothing on the IRS reports for 2007, 2008 and still waiting for 2009 to be posted to access.

Normally, we find the reverse, a 1099 INT that the client DID NOT supply us with.

1099 INT in question NOT appearing is $ 11,000 + for year 2007 and then client phoned the Banking Institution for year 2008 and was told $ 4,000+ reported, and 2008 IRS account is not showing that either. Duplicates being mailed to T/P by banking institution



Sandy

[Black Bart]

I'm not surprised.

Sounds crazy alright and you'd think that banks would have much stricter oversight, but some of their bookkeeping, tax reporting, and personnel are just awful. We once had a local bank (now sold) that was notorious for overstating/understating year-end interest income/expense figures, changing them, and occasionally switching back again. So, it can happen.

I've found the IRS will accept any OVERstatement of income, so if the guy figures the $11K was about right you could use that if he'll go along. Problem is, of course, he may want to use the bank's $4K anyway or, worse, IRS' zero figure and you may lose the client over something beyond your control.

P.S. If the bank's $4K is closer to right, he could ask for a corrected 1099 which would get you off the hook although, as you know, it's frequently hard to get one done and especially for older years.

[Black Bart]

Decided anything?