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Old 02-09-2019, 08:30 PM
 
Location: Gulf Coast
1,096 posts, read 591,799 times
Reputation: 2140

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We've filed our 1120S taxes a couple weeks ago. Today we get a check and a letter in the mail saying a 1099 will be coming. Check is just $152 and there are a couple expenses against that to claim. Do I have to file an amended return now to claim this? We file on cash basis and really this is 2019 income. What do you think? We're not getting a check back from IRS. The little bit we had left is being applied to next year's taxes.
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Old 02-10-2019, 01:23 PM
 
Location: Aurora Denveralis
5,400 posts, read 1,794,442 times
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If you just got the payment and operate on cash, it's 2019 income.

I never rely on 1099s to tell me what my income was, though. All income and expenses should be in your books whether or not you've received formal acknowledgement or tax docs on them.
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Old 02-11-2019, 06:14 PM
 
Location: Gulf Coast
1,096 posts, read 591,799 times
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Well, this income will be in the books for 2019. The expenses against it (a couple fees) were taken out of the gross check amount and we got the Net amount. So they are 2019 expenses too.



But according to the accompanying letter, they intend to send a 1099 for 2018. CPA says they shouldn't do this. Of course they shouldn't but the IRS isn't going to know they shouldn't, they're going to know they DID.
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Old 02-11-2019, 09:15 PM
 
Location: Aurora Denveralis
5,400 posts, read 1,794,442 times
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Quote:
Originally Posted by Pat Answers View Post
Well, this income will be in the books for 2019. The expenses against it (a couple fees) were taken out of the gross check amount and we got the Net amount. So they are 2019 expenses too.

But according to the accompanying letter, they intend to send a 1099 for 2018. CPA says they shouldn't do this. Of course they shouldn't but the IRS isn't going to know they shouldn't, they're going to know they DID.
I think there are ways to contest/reassign the income, but it may never be an issue unless one of you is audited. Assuming this is for a modest amount (under $1k), just keep all the paperwork and records that show you never received the payment until well into 2019, and move on. If it's for some large amount, you're going to have to get them to withdraw the 2018 filing and issue one for 2019. They don't get to pay that late and claim it as a 2018 expense.

1099s are just memos, somewhere between an individual's bookkeeping and the more rigidly tracked W-2. I've had many years where I never received 1099s for income or received them late, and just ignored them in favor of using my own (matching) (accurate) figures.
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Old 02-11-2019, 09:43 PM
 
Location: Gulf Coast
1,096 posts, read 591,799 times
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The stupid thing is that check is just a bit over$150.00. I would have that much money into having my CPA fix the taxes, both business and personal! Looked for email information for this guy, was going to fire off a message that he better NOT assign this to 2018 this late...but I have no email. He's a lawyer for pete's sake, he should know better. Looked online and since I don't know his firm's name I couldn't find it.



I couldn't have included the amount earlier, I had no idea we were due this little check.


I'm told the IRS tries to match 1099's to tax returns. If this goes in they won't find it listed on mine. Oh well, wait and see.
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Old Yesterday, 07:48 AM
 
3,510 posts, read 2,510,367 times
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Quote:
Originally Posted by Pat Answers View Post
I'm told the IRS tries to match 1099's to tax returns. If this goes in they won't find it listed on mine. Oh well, wait and see.
Don't worry. He did it wrong. If the IRS does contact you, just let them know what happened.

Just wondering, did he back date the check to 2018? Even so, you didn't receive it until 2019.
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Old Today, 12:26 AM
 
Location: Gulf Coast
1,096 posts, read 591,799 times
Reputation: 2140
No, check wasn't back dated. I checked on that. 1/11/2019.


I understood the rules for sending out 1099's was that we don't send to Corporations (and this check is to a corporation) or anybody under $600.00. LLC's get 1099 or sole proprietors above $600.00. Oh well, no use worrying about it, I'll just deal with it if I get the durn 1099. Wonder why they didn't send that out with the check. I hope the IRS fines them for doing this so late (if it's marked 2018).
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