Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-22-2008, 05:59 PM
Junior Member
 
Join Date: Feb 2008
Posts: 3
1099-misc

Hello,
I filed my taxes last year and I got a 1099-MISC in a second job I do working for the City related to my profession, paramedic.
I noticed the preparer reported this income as other income, line 21 on 1040, and no Schedule C or C-EZ was used. I do not incurred any business expenses at all ( not a business).
Was this considered an omission of Income?
Is it a red flag to IRS?
Was this income subject to SE-tax?
Was this Income reported wrong?
Do I need to ammend my 2006 return?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-22-2008, 07:23 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
How should a 1099-Misc Income be reported on the tax return?

If there were no related expenses to this income, as you have mentioned in your question, the reporting of this income as Other Income is perfectly correct!

But, I do think that this income should have been subjected to Self-Employment taxes. If a Schedule SE was prepared on the tax return, then there is nothing to worry about a Red Flag, or Amending your Tax return! This return would have been correctly prepared!

But, if your Tax preparer did not treat this Miscellaneous Income being subjected to Self-Employment taxes, then I would request that he or she file an amended tax return and that you should pay the S/E tax on this Misc Income.

It would be a matter of time, before the IRS will send you a notice requesting the payment of S/E Taxes but, they would require you to pay penalties and interest on this tax. By, filing an amended return and paying this S/E tax, you may very well be able to avoid certainly the penalties and possibly the interest as well!

But, there is no problem in terms of a Red Flag or being audited. This is just an inadvertent omission and following my suggestion is the best course of action if no S/E taxes have been paid on this Misc Income!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning