My client received a 1099-DIV for income that actually belongs to her mother. The 1099 lists mother's name 1st with TOD designation, then my client's name followed by "subject to sta tod rules". But the 1099 has my client's Social instead of her mother's. The issuer of the 1099 stated that it is too late to issue a corrected 1099 and refuses to do so. Is my client stuck with this or is there a fix?
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Nominee
Did you look in TTB or other references for nominee dividend ?
Does it apply in your scenario?Always cite your source for support to defend your opinion -
I did, and it does. But I read somewhere that the 1099-DIV that would need to be filed with the IRS, must be filed by February 29, 2016. Is that correct?Originally posted by TAXNJ View PostComment
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I've done them later. PS: Need to make sure payor changes that SSN. Someone must have given it to them. Prepare new W9.Comment
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Income belongs to parent
Agree with Burke. So long as parent is still alive, and TOD/POD issues do not yet kick into play, then the recipient is indeed the parent and all income should be reported with the parent's SSN.
Sounds like a paperwork problem with the payer.
Your client might want to be sure there are no other similar issues for different accounts, else your client might soon start receiving a handful of deficiency notices for "unreported income."
FEComment
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It has to be issued to TP by 2/29, not reported by TP. Input it and back it out with " 1099 to be reported by (ssn of mother)"Originally posted by lovesledz View PostBelieve nothing you have not personally researched and verified.Comment
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Question,
Does a 1099 INT or 1099 DIV have to be issued for nominee interest/div by TP to receiving nominee party?
Or
Can it just be shown on the Form 1040 form as nominee interest to
On of the reasons I ask is I have a deceased taxpayer and the "Brokerage House" reported interest/dividends to the decedent under decedent's SSN and they belong to the Trust EIN
SandyComment
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