One of my business clients has independent contractors(IC). One of the IC's is applying for a mortgage and cannot locate their 2014 form 1099-misc. Understandable so I mailed them a copy. Same IC wants me to email the Lender on how much the IC grossed YTD for 2015. I don't feel comfortable doing that. I told the IC to go to her bank and have them print off the deposit slips used when depositing checks issued by my business client. In addition, print all the IC's 2015 statements YTD as supporting documents. Supposedly this is what Lender requested but that seems odd.
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Your clients
Confused with your original post, but suggestion is to provide client info you prepared for client to client (client's property).
Business practice to consider:
Always only deal with your client related to their business matters you handle for the client unless client is present when dealing with a third party (unless you have a POA when needed).
If someone else other than your client needs info have them deal with your client who has records you provided. If your client needs another copy to give to whoever they want, give your client second copy and get compensated for the copy.
Found that when you charge each time for copies the client finds the original copy and does not keep asking for a copy of the same document.Last edited by TAXNJ; 06-16-2015, 10:10 PM.Always cite your source for support to defend your opinionComment
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The lender is trying to fill their file with "due diligence" wihtout actually doing any. And try to get you to make representations that could potentially drag you back into the mix if the loan goes south. There's no way you should do anything beyond giving the copy of the 1099l The client might want to give them a prinout of their check dates & amounts, but that's the client's call.
If the IC doesn't understand why you can't provde the verification, you can tell them you're not interested in getting involved in their loan process. And neither is your E&O carrier."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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I would not do this even if the IC was my client. Tell the IC to provide his/her Sch C to the lender.Believe nothing you have not personally researched and verified.Comment
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Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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Comfort letters again
This goes back to the various posts regarding COMFORT LETTERS AGAIN (see various posts on this issue)
Agree with ATSMAN and other posters - stay away - not your job - give client info they paid you to provide to the client - client provides what they want to provide to whoever.Last edited by TAXNJ; 06-17-2015, 09:45 AM.Always cite your source for support to defend your opinionComment
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It sounds like maybe you keep the books for client? It that why they are asking you for YTD rather than client? If so, I would pdf the ledger of checks written to IC for 2015 and forward this to client along with the bank request for this info. The client can then provide the requested info to bank. The ledger of checks written is similar to info that would be on a check stub is the IC were an employee.
On a side note, it sounds like the IC may have income only from your client? If so, you may want to review IC/employee rules with client to make sure the person is really an IC.Comment
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No brainer
Then it's a no brainer. Since you already provide info (which you are hired to do) to the client and client already has the info. Client's property and client gives to who clients wants to give info to.
So why are you dealing with someone who is not your client for your client's info to give to them?
Sounds like you are wasting your valuable time (or am I missing something in your post?). Give client an envelope and tell them if they want to provide their info here is the envelope.
What you are not telling us is what is YOUR client's part in this?
This post is very interesting with many good suggestions. So let us know your decision. ThanksLast edited by TAXNJ; 06-17-2015, 09:49 AM.Always cite your source for support to defend your opinionComment
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YTD Printout
Upon request, I would give MY client a YTD printout of what was paid to the IC. Whatever the client does with that is up to them. I would also tell MY client the charge for this information is XXX and they can recoup it from the IC. I would not have any direct conversations with IC.
Actually, if this would entail more than 10 minutes of work (keeping track of what time you already have), then my client would get a bill. Occasional things like this crop up on all businesses, and I would not want to alienate my client with hefty bills. However, if this happens or "It's always something" with the particular client, I would bill them.Comment
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This is shaping up to be a "unanimous" thread.
Everybody is on the same page, and all of the specific suggestions & follow-ups have been very insightful/useful."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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