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Old 07-10-2012, 04:48 PM
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1099-misc

I have received a 1099-MISC from a company for items that they purchased for me. They state since they paid me a premium for the items that they are required to send this out. The dollar amount is on line 7. I contacted the IRS because I sold personal property to a store and they sent me the 1099-MISC and the IRS said that since Public Law 112-9 repelled the new law that was to take affect that I shouldn't have received this. I have call the store and advised them that this isn't how they were to report this and they said they were told by the IRS that it is. The IRS advised me to file a 3949A Tax form to report the store for incorrectly filing this (because they can right it off as a cost for services this way). What should I do to get my taxes filed? I have already done an extention, so not worried about that, but have to be done by October and want to make sure I do it correctly. Thanks for any help!!!



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Old 07-11-2012, 08:59 AM
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“ They state since they paid me a premium for the items that they are required to send this out. The dollar amount is on line 7. I contacted the IRS because I sold personal property to a store and they sent me the 1099-MISC and the IRS said that since Public Law 112-9 repelled the new law that was to take affect that I shouldn't have received this.”----> In general, a Form 1099-MISC must be issued when you make payments for a total of $600 or more for services rendered by contractors, subcontractors, and others and sales of $5,000 or more of consumer goods to a buyer who is going to resell the goods in any place that does not constitute a permanent retail sales establishment. You would mark the box in item 9 if you have made sales of $5,000 or more in consumer goods under a buy-sell, deposit and commission, or other commission-basis agreement for resale of the products anywhere other than in a permanent retail establishment.
“I have call the store and advised them that this isn't how they were to report this and they said they were told by the IRS that it is. The IRS advised me to file a 3949A Tax form to report the store for incorrectly filing this (because they can right it off as a cost for services this way). “---->I guess you need to follow the IRS instruction; you should contact the business that issued the 1099-MISC and ask them to send you a corrected 1099-MISC. Keep documentation of these communications! You may wish to send the company a letter by Certified Mail. The company DOES have a legal obligation to correct it but you won't be caught up in the mess. if you cannot get the issuer to amend a the wrong 1099 after letting them know on the wrong 1099MISC, you MAY now just need to get back in touch with the IRS and tell them what has happened ( as you already did) by calling the IRS and include a note(copies/receipts of first class mail or etc as evidence) explaining why the particular 1099 form was wrong on your return. The IRS will send the complaint form to the business, who has 10 days to respond (you should receive a copy as well). As long as the payer refuses to cooperate (after at least three attempts to request it changed you need to keep copies/receipts of first class mail stuff or etc as evidential proof to have contacted the payer),
“What should I do to get my taxes filed? I have already done an extention, so not worried about that, but have to be done by October and want to make sure I do it correctly.”-----> This is a very common occurrence. The IRS’d say you need to get a reissue corrected 1099 and to file for an extension. UNLESS they correct the amount on line 7 on 1099MISC you can include the amount as income on your sch C on line 1b Part 1 and on line 27a. You claim an expense item called "additional income erroneously reported" under the category called "Other Expenses", then, as said above attach a statement to the tax return explaining that the payer has erroneously isssued the 1099 to you in 2012 for which you have claimed the deduction under the Other Expenses category.



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