Corrected SSA-1099

[Black Bart]

Just got one of these in yesterday. I hope it's an isolated case and not a whole bunch of them being issued because I've already done several cases of taxable SSA benefits. I hate doing 1040Xs over such stuff as this.

Oh well, I guess I ought to stop griping -- it'll give me something to do in the dead summer.

[erchess]

ummm Bart

Notice of that problem came out a couple weeks back and there were like tens or hundreds of millions affected. SS Offices have a database so they can tell someone if they should have gotten a corrected one. I think the corrected ones were to go in the mail last weekend or maybe the weekend before. The issue in all cases is that some Medicare Payments and garnishments from people's checks were wrongly included in Net Benefits. I understand that most of the problems are concentrated in a few areas so the odds are that since you have had one you will have others whereas there could be some of us who don't see any.

If I were you I would write to the clients who have had taxable social security and encourage them to ask their SS Office if they should have gotten the corrected statements. I think I might do that after filing season unless I thought a competitor might run an ad about the problem as an attempt to get people to come to him.

[Black Bart]

Oh yeah,

Notice of that problem came out a couple weeks back...some Medicare Payments...were wrongly included in Net Benefits...

I forgot about that -- Sandy mentioned it sometime last week and I asked her what it was all about. Gettin' old, I guess.

If I were you I would write to the clients who have had taxable social security and encourage them to ask their SS Office if they should have gotten the corrected statements. I think I might do that after filing season unless I thought a competitor might run an ad about the problem as an attempt to get people to come to him

EC, you're a good scout, but I think you worry too much about some of these things which, in my view (I know yours is different), are issues which don't need to be chased after -- they'll either present themselves as a problem or they won't.

To do as you suggest I'd have to go through the file cabinets and check several hundred folders for taxable SS. Next, if I contact those clients and advise of a possible corrected 1099, they're not going to call SSA -- they'll simply say "Well, if I get a corrected notice, I'll bring it to you. If I don't then there's no problem, is there?" And even if they did call, the clerk would likely say the same -- just wait and see if you get a corrected 1099. As far as getting new customers, by the time most people are on SS they're firmly entrenched with their tax preparer who will be handling any notices they get. I can't think of anything an ad could possibly say to entice anyone away from the tax preparer who had done their original one.

While we all have concerns and priorities, it just seems to me that it's all we can do to fight the larger, obvious, and sometimes overwhelming problems without fanning these little brushfires at every turn; exhausting ourselves with much ado about nothing.

[ecb34691]

According to the SSA press release it affected 2.6 million out of 53 million SSA 1099's and those basicly with Medicare D 9 (Rx drug coverage). Corrected one's were to be issued by 1/25.

[sea-tax]

According to the SSA press release it affected 2.6 million out of 53 million SSA 1099's and those basicly with Medicare D 9 (Rx drug coverage). Corrected one's were to be issued by 1/25.

So that is like only 4.9% of the SSA 1099 issued . I think I will take my chance and like BB said there is more important things to worry about.

[erchess]

I was assuming

that the software would make it easy to search for all the returns with Social Security. Come to think of it I don't think my software has such a feature but when I worked for a storefront preparation firm higherups did have that ability. We would periodically get a list of returns having something in common and instructions to examine them for a possible error.