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Old 04-01-2016, 07:54 PM
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Join Date: Apr 2016
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Question CP2000: Due to 1099-MISC

Hello,

My question is, how to best respond to the IRS upon receiving a CP2000?

I just received a CP2000 notice form in regards to the 2014 tax year. They would like me to pay Self-employment tax due to two payer's stating income on box 7 of their respective 1099-MISC. However, I do not considered myself self-employed and earn these payments as a spiff. My employer has a reseller partnership with the payer(s) and I receive spiffs for certain products sold.

I believe that the 2014 1099-MISC's that I received with income in Box 7 to be inaccurate. I stated this income as "Manufacturer's incentive payment"'s and paid the federal tax that was not withheld. Generally these are stated in Box 3 in the past. In fact, on the 2015 1099-MISC that I received from one of the same payers it is in Box 3. I assume it is too late to ask the payer's for a corrected 1099-MISC from 2014.

Could their 1099-MISC reporting have changed from year to year? I have earned the same type of income from our partner and they have switched from box 7 to box 3 from 2014-2015.

I called the IRS and they instructed me to respond with a signed statement stating I do not agree with the changes. They also mentioned to provide any additional documentation, tax law, etc. to prove my 2014 tax return.

Thank you for your consideration in reading about my issue.

Regards, RS



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Old 04-01-2016, 08:11 PM
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Join Date: Oct 2010
Posts: 5,233
I just received a CP2000 notice form in regards to the 2014 tax year. They would like me to pay Self-employment tax due to two payer's stating income on box 7 of their respective 1099-MISC. However, I

I just received a CP2000 notice form in regards to the 2014 tax year. They would like me to pay Self-employment tax due to two payer's stating income on box 7 of their respective 1099-MISC. However, I do not considered myself self-employed and earn these payments as a spiff. ======>The IRS can not decide yur employment status it is decided by an agreement between you and the employer, the payer.

My employer has a reseller partnership with the payer(s) and I receive spiffs for certain products sold.

I believe that the 2014 1099-MISC's that I received with income in Box 7 to be inaccurate. I stated this income as "Manufacturer's incentive payment"'s and paid the federal tax that was not withheld. Generally these are stated in Box 3 in the past. In fact, on the 2015 1099-MISC that I received from one of the same payers it is in Box 3. I assume it is too late to ask the payer's for a corrected 1099-MISC from 2014. ==>s you said, You may still want to contact whoever reported the information and ask them to correct it.. If you have additional income, credits or expenses to report, you may want to complete and submit a 1040X

Could their 1099-MISC reporting have changed from year to year?===>Aslongas it is incorrect, they can correct 1099 reporting by issuing you new 1099 and submit a copy of new 1099s.

I have earned the same type of income from our partner and they have switched from box 7 to box 3 from 2014-2015.

I called the IRS and they instructed me to respond with a signed statement stating I do not agree with the changes. They also mentioned to provide any additional documentation, tax law, etc. to prove my 2014 tax return.==>Basically you need to prove the IRS your standpoint; they received information from the payer that doesn?t match the information you reported on your tax return to IRS.



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