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    1099 Misc

    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.

    #2
    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."

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      #3
      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.

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        #4
        Originally posted by Burke View Post
        I don't think it is going to match to his SSN anyway.
        On your original post you wrote:
        Originally posted by Burke View Post
        And the Recipient's identification number is the TP's SSN
        So why do you think it won't match ... because of the configuration of the number (2-7 instead of 3-2-4)? That won't make any difference to the computer, which ignores the hyphens anyway.
        Roland Slugg
        "I do what I can."

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          #5
          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.

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            #6
            Originally posted by Burke View Post
            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.
            Now that is strange. (Not you, Burke! grin)

            I also always thought that hypenation or lack of it didn't matter, that numbers were exclusive.
            ChEAr$,
            Harlan Lunsford, EA n LA

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              #7
              And you may be right. That was a LONG time ago.....but I had to write a letter to the IRS to explain it.

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