Posted by John Bouchard on 2/26/11 11:39am
Msg #374310

COMPANIES THAT DON'T SEND 1099s

I have ten companies that did not send 1099s because I did not meet the 600.00 threshold. How do we report this when filling out the 1099 info - I am thinking of grouping one total and calling it miscellaneous (not sure what to put in for tax number). OR, do I need to completete one for each company

Reply by Ilene C. Seidel on 2/26/11 11:50am
Msg #374313

When reporting 1099 income I believe the schedule asks for income, I know you can list each 1099 if you are using a computer program but it's not a requirement to insert the ein #. I just group the 1099's together then add the other income (without 1099).

Reply by MW/VA on 2/26/11 11:50am
Msg #374314

Many of us don't list the 1099's at all. I use turbo-tax and just put my gross income on Schedule C.
The 1099 portions of that were reported to the IRS.

Reply by Linda Juenger on 2/26/11 11:53am
Msg #374316

Isn't it a red flag when you don't report each 1099 received individually? The company that sends the 1099 reports them. Don't they match them to our returns? I report each 1099 I receive and the rest of the income seperate.

Reply by Ilene C. Seidel on 2/26/11 11:57am
Msg #374317

I use to do tax returns, when sending the return the 1099's were not sent with the return, they only require the W-2's and now with efiling I doubt that. Believe me if you under report 1099 income based on the ones files they will contact you but if you are reporting more then the total 1099 no issues.

Reply by MW/VA on 2/26/11 12:08pm
Msg #374320

No, putting in each 1099 is for your records, essentially.

I used to do that, realized it was a waste of time, and stopped. I have my 1099's if I need them.

Reply by Linda_H/FL on 2/26/11 12:00pm
Msg #374318

I use TurboTax - I itemize each 1099 I receive with full info - balance of the income is under "Income" with no 1099 designation.

Reply by John Tennant on 2/26/11 12:37pm
Msg #374329

IMHO, both Linda's are correct. IRS is doing everything to discourage paper returns. When doing electronic returns W-2 and 1099 income should be itemized on the return. Other receipts are just that and are documented in a lump sum. Other income should be itemized only in your bookkeeping system for back-up should you be involved in an audit.

Reply by Linda Juenger on 2/26/11 1:11pm
Msg #374333

I do it that way also Linda. IMO I think it is a safer way n/m

Reply by MikeC/NY on 2/26/11 3:42pm
Msg #374356

Since the 1099s don't get filed with the return (although the IRS has a copy), I only use them to verify that someone is not claiming that they paid me grossly more than they actually did. When it comes time to report total income, I use my own records of cash received as gross income. That is always higher than the total of the 1099s I've received (if it's ever lower, there's a problem somewhere...).

Listing them individually is something the tax prep software has you do, which can be helpful for record keeping purposes, but it's not crucial.

Reply by Susan Fischer on 2/27/11 4:22am
Msg #374422

My CPA doesn't acknowledge them - it's all about what

~I~ received ala ~my~ records.

I'm responsible for my numbers; they're responsible for their's. It's not up to me to challenge ~their~ numbers, for goodness sake. That's over my pay-grade.

If you have your income ducks in a row, there should be no problem, John.

jmho.

Reply by John Tennant on 2/27/11 1:14pm
Msg #374434

Re: My CPA doesn't acknowledge them - it's all about what

Hello Susan,

Both you and your CPA certainly can choose to file in any way you choose.

FWIW, IRS Publication 334, chapter 1, page 11 is very specific regarding penalties that apply to filing incorrect 1099 forms. There is also information regarding the Independent Contractor obtaining a corrected copy, or making a notation on their tax return. Yes, even electronically, there are comment sections for almost all of the forms.

This info is available on line at WWW.IRS.GOV