Client filed an income tax return extension, but in doing the return, I found that a 1099 should have been sent. Should I go ahead and prepare and send? Can it still be sent electronically? Do you think there might be a penalty? The recepient of the 1099 money is reporting the income. I do the recepient's taxes also, so I know. What's the best course of action?
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Prepare the 1099/1098 and send it in. Send the recipient copies to the recipient. Tell the client there MAY be a $50 penalty, just so they are on notice. Then forget about it, because probably nothing will happen.
I've never seen the penalty assessed, but even if it does just how much trouble could that be? The tax savings is much greater than the $50. The client just needs to write the check and remember to get the 1099 done properly next year."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
I would not do that. How can you prepare and send in a 1099 (or any other tax form or return) without the client's permission? Instead I would advise the client about the missed 1099, including the possible $50 late penalty, and let him decide what to do.Originally posted by JohnH View PostRoland Slugg
"I do what I can."Comment
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Good correction - I didn't word that very well. My post simply assumed the client would take good advice & follow through. I didn't mean to imply that the preparer should do this without the client's knowledge. Procedurally, I'd prepare the 1099's & 1098 and give to the client with instructions to mail them.
Since both parties are clients, I would inform the client that I normally charge $80 but there will be no charge this year. If there's no penalty, they saved $80. If there is a penalty, they saved $30. Next year the charge will be $80 for the first 3, then an add-on for additional 1099's.Last edited by JohnH; 07-13-2012, 06:28 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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I just had the same situation, and prepared the 1099 for the client. Can the 1099 & 1096 still be efiled, or does it have to be paper filed?
If paper filed, does anyone know where I can get a red 1096? The frikkin' red 1096 is what led me to truly embrace the miracle of efiling 1099s.Comment
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For a few bucks per return...
The services that provide filing of information returns will do it for you. I think they do it electronically even when late, but in any case, it saves you the trouble of getting hold of and filling out the acceptable forms.Evan Appelman, EAComment
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For Joan
I sent you a message. I have some red 1096 forms.Comment
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Check EFTPSOriginally posted by joanmcq View PostBelieve nothing you have not personally researched and verified.Comment
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E-filing 1099
You can't file 1099s with EFTPS.Originally posted by taxea View Post
To file a 1099 go to https://fire.irs.gov (if you have software that will e-file 1099s)Comment
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Update
After 3 or so weeks, the 1099 late efile I attempted was finally accepted!
I was hoping this would be the case with MEF, but after so much time passed, I had given up hope, hence my request for the **** red 1096 forms.
Yippee!Comment
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