1099-misc underreporting rent actually received.

[AZ-Tax]

TP comes in with 1099-misc that reported rent (Farm cash rent) TP received except the checks the TP received totaled about 10% more then 1099-misc reported. When landlord contacted tenant he replied I didn't include the residential rent on the form 1099-misc. When TP asked to correct 1099-misc, tenant refused. Obviously the TP should report the total rent actually received but is there penalties for the PAYER like the tenant who under report?

[kathyc2]

TP comes in with 1099-misc that reported rent (Farm cash rent) TP received except the checks the TP received totaled about 10% more then 1099-misc reported. When landlord contacted tenant he replied I didn't include the residential rent on the form 1099-misc. When TP asked to correct 1099-misc, tenant refused. Obviously the TP should report the total rent actually received but is there penalties for the PAYER like the tenant who under report?

I'm not seeing where the problem is. If the tenant is renting land and a house on the land that is his residence, the only payments he incurred in a trade or business was the farm rent and that is what should be on the 1099Misc.

There is no problem for your client reporting more rental income than showing on 1099.

[Burke]

I wouldn't worry about it. As long as reported rent equals or exceeds the 1099, IRS is not going to care. I don't know how much (if at all) they cross-check anything on the reporter's side..

[taxea]

The tenant did it correctly. a 1099misc is not required to be issued for personal rent. The total rent received by the owner is required to be reported.