Here is an interesting case. One of my elderlies fell while in a well-known national chain of fast-food stores, because of some liquid spilled on the floor. The company paid for all his medical expenses. Recently, he received a 1099-MISC with the exact amount of these expenses listed in Box 14 - Gross Proceeds Paid to an Attorney -- more than $10K. He didn't even sue! There was no attorney. And the Recipient's identification number is the TP's SSN, but it is broken down like an EIN, e.g, XX-XXXXXXX. Settlements of a lawsuit are not taxable due to physical injury, but what would you recommend I do with this, if anything? He didn't even know how much it was, as he never got any bills.
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If there was no attorney involved, the 1099-MISC form should not have been issued, and if one was involved, the form should have been issued to him, not to the T/P. Your client should advise the FF restaurant of its error and ask that a corrected 1099-MISC form be issued showing $0 in Box 14.Roland Slugg
"I do what I can." -
I realize it is wrong. I was just curious whether I had to account for it on the return. I don't think it is going to match to his SSN anyway.Comment
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Roland Slugg
"I do what I can."Comment
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Hmmm.....interesting. I was assuming it would match to whoever had that EIN. I had a case once where the TP's SSN and the EIN of a major foundation were one and the same, except for the configuration.Last edited by Burke; 04-13-2012, 06:10 PM.Comment
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And you may be right. That was a LONG time ago.....but I had to write a letter to the IRS to explain it.Comment
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