Client sent along a document from CC company citing a refund of $xxxx for "the amount you may have overpaid" along with "$xxx for the inconvenience". He received check for the 2 amounts. Letter also states "we'll report the taxable portion. If required by tax reporting rules, we'll send you an IRS form 1099-MISC.........". Since no 1099 was issued, then none of it is taxable, correct?
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Seems
Seems the answer for the credit card to be or was sent is by calling the CC companyOriginally posted by Justataxguy View PostAlways cite your source for support to defend your opinion -
Sounds like a plan to me.Originally posted by TAXNJ View Post
The refund of overpayment check is definitely not taxable. The other maybe could be considered a rebate that would be a discount on original purchase and also not taxable. It depends on whether the CC company still intends to issue a 1099.Believe nothing you have not personally researched and verified.Comment
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Receiving a 1099 has absolutely nothing with being taxable.Originally posted by Justataxguy View Post
Money received is taxable unless there is a provision in the Tax Code to say it is not taxable. Offhand, I don't see any way that it would NOT be taxable.Comment
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They didn't say "if taxable", they said "if required by tax reporting rules". So was the amount under $600? If so, no reporting required (depending on the box reported in), but still taxable.Originally posted by Justataxguy View Post"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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then you have to determine what the extra money was and whether it is taxable.Believe nothing you have not personally researched and verified.Comment
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