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WrongWay Feldman posted:I guess this is the place to ask. How much in total? Was he an individual or an individual operating as a business? Assuming business: Less than $600 doesn't require a 1099-Misc (you would just claim as schedule C or general misc on line 22 where appropriate) If you had more, you can file a substitute and explain the situation, but you have to also describe your attempt to get the form. I would tactfully (or hostily depending on your relationship with him) ask what his intentions are or if he is planning on submitting a 1099 for you. He should have sent it out by Feb 1 just like a W2. He may be thinking he is doing you a favor by not filing a 1099 for you (although he's screwing himself if he actually pays taxes). As a person, he wouldn't have to file a 1099-MISC Speaking of substitute forms, is there a way to file a 1099-T Substitute? I misfiled for 2007 and am running out of amendment time. I would like to claim my student tuition for a Lifetime Learning Credit and get almost $2000 back. My school doesn't have 1099-Ts online before 2009. I requested the form a few weeks ago and it still hasn't come. I can lookup my Bursar statement and see what my payments were, but would that be sufficient to file for the credit?
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Mar 11, 2011 01:42
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Zantie posted:Because this doesn't change any of the tax due nor our refund amount do we even need to amend this? My worry is that the IRS would get the 1099 from the company and then assume my husband reported $6596 without the $2414, and then send us a bill assuming he made $9010. Would they do that, or would they figure we included it already because it was mailed to us 8 weeks late? To answer your question more directly, you'd get audited. Likely a paper audit, but possibly a full one. Assuming everything else is above board too, you're ok. I believe the ultimate arbitor of penalties is the tax paid. http://books.google.com/books?id=YZ...mistake&f=false says there is no precedent in the US Tax Code for a penalty of a harmless error in a previous year which created an error in a subsequent year. Also penalties that aren't due to fraud or frivilous positions are calculated based on the net tax difference. (what you owed vs. what you paid, obviously they don't assess a penalty if they audit you and find overpayment)
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Mar 17, 2011 17:55
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Zantie posted:Well, this confuses me even more when comparing your answer to AbbiTheDog's. If we would be audited they'd find that my husband already reported that income. We sent in our 2010 tax return before receiving the 1099-MISC. He didn't forget to include that income, it's there in the gross receipts since he kept record of all the checks he got last year. Leave it be. Harmless error is what you have. It was not disclosed individually as part of the schedule, but it was disclosed. In the event that an obscure rule affects that in future years, the fact that it is a harmless error (did not change your tax requirement) means that it will almost certainly just be treated as filed. The problem with tax law is that you have to treat individuals who make only a few thousand dollars a year the same as individuals with billions in assets and many businesses. Given the size of the tax code and the sheer volume of potential issues, there are always situations that can arrise that no one thinks about. CPA's and Tax lawyers like this, but it doesn't help the individual or small business owner trying to file simple taxes without spending a fortune. As not your lawyer, and purely someone on the internet, I would just leave it be as it would not change your net tax position. If you want more sound advice, go see a CPA or Tax Lawyer.
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Mar 17, 2011 21:47
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AbbiTheDog posted:Wow, where did this come from? More realistic approach of under-reporting is a CP2000 matching notice and automatic calculation of tax owed. No need to frighten the poor person to death. What is people's fear of audits? I am the first one to dismiss the 'if you have nothing to hide, what are you afraid of' when it comes to people taking civil rights in Nanny States. However, taxes are different. You have filed a form with a government agency stating facts. They are simply checking your facts. If the facts are as you say, there is nothing else to worry about. I wonder if this dates back to before the mid 1980s when you didn't have to actually list a legit social to have a dependent and so many people claimed an extra few kids to reduce their tax burden. In fact there is a story that by tax roll calculation about 7 million children died as a result of that regulation. http://en.wikipedia.org/wiki/Social_Security_number#Use_required_for_federal_tax_purposes I know small businesses and self employed may have problems because they guestimate some of their numbers, but this does not account to the fear that some have with respect to audits.
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Mar 18, 2011 18:58
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furushotakeru posted:Even a no change audit can be expensive (if you have a representative go in for you), invasive, time consuming, and an all around pain in the rear end. So even if you "have nothing to hide" it still usually isn't a pleasant experience for most people. I can see that, I guess it all depends on your sophistication or level of reaction. I guess I should revise my statement to a reassurance, that audits aren't always an instant rear end rape that people think they are. AbbiTheDog posted:I know, but even if it didn't, haven't seen too many audits start from a matching notice. This should actually make people feel pretty good. .4% is pretty drat good, especially for a public preparer (presumably bigger incomes, higher chances) The national averages are about 1% for < $25k and 2% >$100K from http://www.fool.com/personal-finance/taxes/2006/03/17/top-5-audit-myths.aspx It's not random though, I wonder what the 'random' rate is. KennyG fucked around with this message at 23:10 on Mar 18, 2011 |
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Mar 18, 2011 23:05
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furushotakeru posted:The local IRS office (San Jose) puts on "practitioner liaison meetings" three times a year, hosted by the Mission Society of Enrolled Agents. These meetings are usually attended by district and regional level management from the IRS. Without getting too political, this is what 2 year pay freezes, proposals for promotion freezes and all the federal funding budget politics do to the government workforce. Hard to argue that the IRS auditors are overpaid. Also, really, they tell you its a training audit, but it costs you money? That seems so, so, SO wrong. I guess that's better then them just not telling you its a training audit even though it really is.
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Mar 19, 2011 19:57
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I don't know whether to be happy or sad that I'm getting a .25% combined refund. On the one hand, I had a nearly 13% refund last year so I'd say I did better on my W4. Although, I may need to reduce it as some key deductions will finish phasing out this year unless I get married.  I know it's my money, but of course when you get used to that nice February cash infusion and then you get bubkis it kind of puts a damper on things.
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Feb 16, 2012 04:22
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