IRS matching all Sch E worksheets rental income w/one 1099-Misc

[AZ-Tax]

My client received a 1099-misc w/$5350 of box 1 rental income from 3 different properties. Property 1 a residential, property 2 pasture & 3 storage unit. Tenant issued one 1099-misc. I was planning on reporting income & claiming expenses on 3 different Sch E worksheets w/o completing the 1099-misc worksheet. Am I correct that IRS will compare the 1099-misc box 1 amount with line 3 rental income worksheets to check if the amounts add up to box 1 OR should I create three 1099-misc worksheets for each property linking them to their related Sch E?

[dtlee]

My client received a 1099-misc w/$5350 of box 1 rental income from 3 different properties. Property 1 a residential, property 2 pasture & 3 storage unit. Tenant issued one 1099-misc. I was planning on reporting income & claiming expenses on 3 different Sch E worksheets w/o completing the 1099-misc worksheet. Am I correct that IRS will compare the 1099-misc box 1 amount with line 3 rental income worksheets to check if the amounts add up to box 1 OR should I create three 1099-misc worksheets for each property linking them to their related Sch E?

Not 100% sure what you are asking, but neither 1099-MISC forms nor 1099-MISC "worksheet" forms are transmitted electronically. Are you mailing these returns? I was not aware of the requirement to attach worksheets like this. Is there a requirement I am missing?

I would be glad to learn if there are new rules before I start the new season.

Thanks.

[AZ-Tax]

IRS matching all Sch E worksheets rental income w/one 1099-Misc

Not 100% sure what you are asking, but neither 1099-MISC forms nor 1099-MISC "worksheet" forms are transmitted electronically. Are you mailing these returns? I was not aware of the requirement to attach worksheets like this. Is there a requirement I am missing?

Since the IRS receives a copy of the 1099-Misc, I am guessing the IRS will check to make sure the gross rent reported, added up if gross rent appears on more then one Sch E, matches the 1099-misc box 1. I forgot, the 1099-misc worksheet does not transmit.

[dtlee]

Since the IRS receives a copy of the 1099-Misc, I am guessing the IRS will check to make sure the gross rent reported, added up if gross rent appears on more then one Sch E, matches the 1099-misc box 1. I forgot, the 1099-misc worksheet does not transmit.

My guess is that you are correct that they will look for at least that much rent to be reflected. In other words, total gross rents must at least equal total rents reported as rent on the 1099s.

[taxea]

I prepare a supporting statement for each Sch E which shows how I allotted the 1099 total:

First input the 1099 total using the detail box for the 1099 entry into Sch E a worksheet as follows:

1099misc from EIN# 45000.
allotted to Sch E b rental income -15000.
allotted to Sch E c rental income -15000.
total bal 15000.
balance to Sch E a rental income
(program will transfer total of form to proper line on Sch E a 1099 income)

I do the same entry for Sch E b/c worksheets but change the designated form names... in other words
Sch E b would show allotted to Sch E a and c, balance to Sch E b.
Sch E c would show allotted to Sch E a and b, balance to Sch E c.

hope this is clear enough for you. I have been doing this for years and have never been notified by IRS of a non-matching 1099misc