Posted by pat/WA on 2/4/12 3:27pm
Msg #410887

1099

This is not a new subject but I would like to know if others are receiving 1099s the are inflated. I now have three from three different companies that show more income than I have recorded. One for $1195.00
I have a computerized accounting system so I think it is accurate although it does not record income until a check is received.

Reply by Shoshana/AZ on 2/4/12 3:55pm
Msg #410890

I also only go by checks received and deposited by 12/31. If you have proof, it shouldn't be an issue. Also, I always contact the IRS for a transcript of income reported by various companies. I want to make sure I am claiming the right amount of income. Sometimes, the companies don't send one. Then I cross reference to my records. Most of the time I am claiming more income than is reported on my behalf.

Reply by Les_CO on 2/4/12 5:11pm
Msg #410896

I do business as a Corporation…..I don’t get 1099’s …. and don’t care about them. If you are going to be in this business you might consider a LLC or a Corp…easy to set up….some labiality protection, and no worries about other people’s accounting. JMO

Reply by BossLadyMD on 2/4/12 9:27pm
Msg #410905

I prefer 1099s. It works well in Maryland :) n/m

Reply by JanetK_CA on 2/5/12 3:20am
Msg #410924

I generally work for a wide variety of clients and have always had more gross income than what shows up on 1099s. For example, most title co's I've worked for issue a check out of the escrow for each transaction, so they don't send 1099s and I usually have a fair amount of work from companies that I hear from just once in a while when they have something in my area. I always use my own accounting to come up with total income and if that comes to more than what is reported to the IRS, I don't need to worry about what is on the 1099s I receive.

If this is the case for you, as well, seems to me you don't really have to be too concerned about what is reported on the 1099s you receive - although it does bug me to hear that companies are going to such lengths to cheat on their taxes!

Reply by Carolyn Bodley on 2/5/12 11:18am
Msg #410944

Re: companies going to such lengths to cheat on taxes

I disagree that the companies are going to such lengths to cheat on their taxes -- it simply means they are on accural and not cash basis.

Reply by JanetK_CA on 2/6/12 4:21am
Msg #410991

Re: companies going to such lengths to cheat on taxes

I imagine that's true of most of them, but it sounds to me like there may be a few pushing the limits. The usual culprits, probably.

Reply by jojo_MN on 2/6/12 9:43am
Msg #411006

See my message #410914 n/m

Reply by MW/VA on 2/5/12 9:48am
Msg #410930

If you receive a 1099 that you feel is incorrect & have

your own record of the correct amt., you would call them & ask them to send a corrected 1099.
I don't receive 1099's from all the cos. I've worked for, & don't list them separately on my tax return. I file a Schedule C for my business income and use my gross income (including any that might have been reported on 1099).
If you're not filing a business return, you will need to list the income from 1099's under Misc. Income.