Posted by RuRu/NC on 2/10/13 10:19am
Msg #455036

Slow 1099

Anyone received Service Link 1099
Why are they so slow?

Reply by Lee/AR on 2/10/13 10:20am
Msg #455038

Got a bunch yesterday. 1/division n/m

Reply by PublicTipic on 2/10/13 10:22am
Msg #455040

Still waiting for their 1099....everything is slow

Reply by Judy/TX on 2/10/13 11:30am
Msg #455045

Still waiting on Title Source - anyone get theirs?

Reply by signhere/ca on 2/10/13 1:41pm
Msg #455062

Re: Title Source received

Yes, I received my Title Source 1099 last week.

Reply by MW/VA on 2/10/13 10:24am
Msg #455041

You really don't need to wait for 1099's. Many

report all their income & don't list 1099 income separately when filing taxes.,

Reply by RuRu/NC on 2/10/13 11:46am
Msg #455048

Re: You really don't need to wait for 1099's. Many

True, but I don't want to risk amending a return.

Reply by sueharke on 2/10/13 11:49am
Msg #455049

Re: You really don't need to wait for 1099's. Many

The best way to avoid an amended return because the 1099 did not arrive is to keep accurate accounting records of income and expenses. That way, the 1099 income is included, no matter when the form arrives.

Reply by ananotary on 2/10/13 11:59am
Msg #455050

I don't even pay much attention to my 1099s

I report all income regardless of if I received a 1099.

Reply by MikeC/TX on 2/10/13 6:29pm
Msg #455087

Re: You really don't need to wait for 1099's. Many

In most cases, the income you report from your own records is going to be higher than the 1099 income, so it's not going to be an issue. As long as you are keeping good records and reporting all of your income, it will not be a problem.

Usually, the only time a 1099 from a vendor will show more income than you received from them during the year is if you did a lot of work for them in December - they book the expense as soon as they cut the check (even if they don't mail it until January), while you will book the income when you actually receive the check. So they are saying they paid you in December, but you are saying you didn't receive payment until January (or later). If you're on a cash basis - which most folks are - this is easy to explain as long as you keep good records.

It all works out in the end - they over-report one year and under-report the next because of their accounting systems. Unless the difference between what they say they paid is significantly larger than what they actually paid you plus what they owe you from end of the year jobs, don't worry about it.

Reply by John Tennant on 2/10/13 12:05pm
Msg #455052

Re: You really don't need to wait for 1099's. Many

IRS does attempt to match the 1099 reporting from your vendors to your tax filing. They have increased this practice the last couple of years. I list my income by 1099 entry. All income that I do not receive a 1099 for is listed as other income, right from my Quickbooks system. I believe this will reduce the possible confusion by the IRS and also reduce the chance of being the subject of an audit.

Reply by desktopfull on 2/10/13 1:07pm
Msg #455057

I don't use the 1099's anymore even it they are sent. To many times they are incorrect based on my accounting method (cash) and trying to get a corrected 1099 is next to impossible. Never had a problem with IRS doing this either.

Reply by sueharke on 2/10/13 3:41pm
Msg #455067

The only time I'd try to get a corrected 1099 is if the incorrect amount is more than your accounting income. I've seen this happen when the company realized their error and the 1099C had $8.760 less than the first 1099. I would consider the amount important to correct the first 1099 before filing a tax return.

The other side of the argument is that you have already reported this income based on your accurate accounting records. Therefore, you might want to correct it in case the IRS has inept employees trying to figure out what letter to send when you didn't amend your tax return (thus wasting your time to tell him or her the income has already been reported).

Reply by RuRu/NC on 2/10/13 3:46pm
Msg #455068

Glad that has been working for you so far, but my time is too valuable to chance
IRS comparing and auditing. I have had letters from IRS about investments and stock options and it is no fun dealing with them. And I hate staying on the phone all day for trivial stuff.
I will wait for the 1099.

Reply by sueharke on 2/10/13 4:42pm
Msg #455073

Your issue of staying on the phone all day with the IRS is something I do a lot! Most of the time it is for tax clients. One time the IRS Taxpayer Advocate (TA) said it would take 2 weeks to solve the problem..it took two months as the computer system kept putting the problem back! I only went to the Taxpayers Advocate after working on the problem for 3 months with 5 different departments. The TA has the ability to interact with all departments on instead my wasting my time.

Reply by RuRu/NC on 2/10/13 5:10pm
Msg #455076

Bless your heart! ; )

Reply by desktopfull on 2/10/13 5:13pm
Msg #455077

I personally refuse to pay income tax on two or three thousand dollars a year ahead of time simply due to the fact that the company/companies issuing the 1099's are on the accural method of accounting and write checks in the last week of December so they can use the deduction and then don't mail those checks for up to 3 months into the next year. These companies likewise will not issue corrected 1099's, I've tried without fail on many occasions to get them to so now I use the figures in my books which are 100% correct. I can also send copies of the emails to the IRS where I tried to get the corrected form and their responses. Like: Your check for the November & December closings will be mailed on March 22, I received the check dated 12/28 on 3/27. But the 1099 they sent for the previous year included the amount in the check dated 12/28, even though it was received 3 months into the next year. No, I won't pay income tax on income I haven't received, whether I have to deal with the IRS or not.

Reply by sueharke on 2/10/13 7:48pm
Msg #455097

I don't know what type of software you use to prepare your tax return or accounting records, but there is a solution. Since the SS uses accrual accounting and you use cash basis accounting, report the income based on your accounting records (cash basis). Send a written letter attached to the tax return by an electronic note (if you file electronically and a copy of the 1099 that causes the issue) that shows the difference between accounting methods (yours and the SS). State that you did not have "CONSTRUCTIVE RECEIPT" (look it up on Google) of the difference due to the SS accounting method. Constructive receipt is that you received or had the right the receive the money as of 12/31/12. If the money is not available until AFTER 1/1/13, it is not taxable on your cash basis accounting method. Email by a private message if you need more info.

If you have to file a paper return with a written letter explaining the issue. I am going to be doing the electronic method for one client and the paper return for a different client.

I totally expect to get a letter on both returns and I do not expect the client to respond to the IRS or Franchise Tax Board (FTB) as I will be doing that! It is amazing how many issues are caused by companies sending out forms 1098 and 1099 who do prepare them correctly.

Reply by MW/VA on 2/10/13 7:04pm
Msg #455095

IMO self-employed are always at risk of an audit.

It's best to keep really good records, and be able to backup everything you're claiming.
I've found that the 1099's I get don't always match my records anyway.

Reply by JanetK_CA on 2/10/13 7:36pm
Msg #455096

Re: IMO self-employed are always at risk of an audit.

I agree. And if you work for a wide variety of companies - many of whom won't bother sending a 1099, especially title companies that pay at disbursement - you will have more income than what shows on your 1099s, as someone else said.

None of the CPAs I've ever used have included 1099s with my returns or listed that income separately. We've always gone with the income my records show, which is always more than the total of all 1099s. So I don't worry about when or if I receive the, I just go with the real numbers - and so far, so good!

Reply by sueharke on 2/10/13 7:50pm
Msg #455098

Re: IMO self-employed are always at risk of an audit.

Janet K: I like your style

Reply by Xcel Signings, Inc - Mobile Notary on 2/12/13 9:00am
Msg #455412

just recieved mine from them yesterday...