Corporation gets notice for underpayment of taxes. Cause being that IRS does not see a 1099-Misc reported on the tax return. What??? Amount is $1,475, reported income was over $150,000. I sure hope this is just a sampling IRS does. If they are sending notices for all 1099-Misc they do not see on the tax returns we will be very busy explaining. I guess IRS also doesn't care that corporations are not supposed to get a 1099.
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I had one like this. In our case, the type of income on the 1099 didn't match up with the income category showing on the 1120. ( rental, I think). In any case, an explanatory letter describing where the 1099 income was reported solved the problem."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
1099 matching program
Since when has the IRS added corporations to their matching program for 1099s?
John's solution will work, but Gretel's client should not have received this notice to begin with.Comment
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