Posted by JulieD/KS on 3/2/10 8:05am
Msg #324853

First American Title Insurance Co.

I'm confused. I got a letter from First American Title Insurance saying they are updating their records and need a W--9 from me. At first, I thought it was FASS and was going to blow it off. I don't work for FASS. Now that I look at it again, I don't think it's FASS.

Regardless of who it is, I haven't worked for either in at least three years. Does anyone know anything about this company? Is this the company that took over Transcontinental?
Thanks

Reply by Accesstoledo on 3/2/10 8:27am
Msg #324860

Last week I got a 1099 from them to cover the year 2008

Reply by Linda_H/FL on 3/2/10 8:44am
Msg #324861

My understanding is FASS is the scheduling service for First American Title...correspondence sent to me was that FASS took over for TCT...

I'm really curious about the 1099 issue (and it's just curiosity as I've not done anything for them) ...it would appear whoever does their books has inadvertently used the incorrect 1099 forms for 2009....what a mess this can create - it just seems odd to me that they'd be sending out 2008 1099's now...I think someone goofed, big time...if it were me I'd be contacting FASS/FATIC immediately since the tax implications can be huge.

MHO

Reply by Stamper_WI on 3/2/10 9:04am
Msg #324865

The letter says they converted their accounting system in 2008 and they omitted reportable income from our statements for that year.
In other words the 1099's that year probly showed lower income from them than what it actually was.

Reply by Linda_H/FL on 3/2/10 9:10am
Msg #324867

Wow...that's just absolutely amazing ...

Hopefully no one filed in strict reliance on their 1099's....good grief...

Reply by mtnotary on 3/2/10 9:31am
Msg #324868

I received one of those letters too about the 2008 1099s. I was not very happy and thought man why are they sending it now.
I think instead of hand holding the signing agent perhaps they should hand hold their own accounting department.

Reply by Les_CO on 3/2/10 10:00am
Msg #324872

You guys may want to think about filing a LLC, or S-Corp so you don’t have to worry about 1099’s

Reply by JulieD/KS on 3/2/10 10:28am
Msg #324875

Or...keep good track of your income so that you know how much you made. The 1099MISC forms are to prove to the IRS that the company paid their contractors X amount of money as verification of what they are deducting on their tax return. It's not designed to be an accounting system for the contractor.

And, as for becoming an LLC (which then can file as a C-Corp, S-Corp or sole proprietorship), just beware that if you don't know how to do taxes, or if you don't have someone who can help you prepare it, the cost to have a professional prepare your 1120S (for an SCorp) can be costly. Do you want the added preparation expense just to not receive forms 1099? Seems like overkill to me...especially when some companies will send a 1099 anyway!

Reply by Les_CO on 3/2/10 11:54am
Msg #324880

Re:Julie

There are advantages, and disadvantages to having a ‘company’ (LLC, Corp, etc.) and a tax ID number. As far as I’m concerned I don’t have a clue about doing my ‘own’ tax returns. I incorporated in 1971, and since then have had my corporate, and personal tax returns done professionally.
Yes it costs some money, but in my opinion (after 5 audits, 3 being ‘no-change audits) well worth it. My guy manages to deduct what he costs, and a lot more….so basically his services are free. And I have absolutely no worries….priceless!

Reply by HKT_TX on 3/2/10 11:58am
Msg #324881

Re: Re:Julie

His services are free? No, his services are an expense, which is a tax deduction, not free! And if I would have had 5 audits in the last 30 - 40 years, I would seriously think about changing accountants!

Reply by Les_CO on 3/2/10 12:05pm
Msg #324883

Re: Re:Julie

Thanks for your opinion, I'll consider it. When I said BASICALLY free, what I meant was that what he charged I deducted from my pre-tax income.

Reply by Frenchie/TN on 3/2/10 12:29pm
Msg #324888

Tax preparation costs

To be done correctly, the tax preparation fee should be allocated in two protions by your tax preparer: the portion allocated to the cost of preparing your individual return is deducted on Schedule A if you itemize expenses and the portion allocated to the cost of preparing your schedule C, SE Taxes etc, should be deducted on your Schedule C as a business expense. If one doesn't itemize then one looses the deductibility of the personal tax prep cost.

Reply by Les_CO on 3/2/10 1:18pm
Msg #324899

Re: Tax preparation costs/Frenchie

Right………??? Let me clarify please…I could not prepare/file my own tax returns if 3 guys held guns to my head. I don’t know, and I don’t want to know how to do this. I suggest if you are in business, you find a good CPA, or tax professional to advise you. Do not take advice from the unknowing (like me) on a chat board.

Reply by Letty Marquez on 3/2/10 1:08pm
Msg #324894

Re: Tax implications for a 2008 form

Hi There,

If you guys received a 1099 from 2008 and you already reported as income, you have nothing to worry about.

When you do your taxes and enter income on schedule C there is a part in every single software that ask the question "do you received any other income not reported in a 1099misc? Here is where you enter all the money you made during the year from which you did not received a 1099misc form.

You won't have to do an amended if you did in fact report your income. I will advice you to contact IRS by mail (if by phone, just keep track of the id number and name of the person you talk to) staying you did not received the form in 08 but you did report the income.

Hope this help