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1099 Question on various tax forms - schedule F, schedule C, etc.
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Cathy
Mar 15, 2012, 12:42:48 AM3/15/12
to
Just wanting feedback on how others would suggest handling this or how
they are suggesting clients handle this.
On the various business forms this year - including Schedule F and C for
Form 1040 (and 1120, etc.) - there are the new questions I and J
(references from Form 1040 Schedule C) asking if you made any payments
in 2011 that would require you to file Form(s) 1099 and if yes, did you,
or will you file all required forms 1099?
Client has a schedule C with approximately $1500 +/- rent expense paid.
Client did not file 1099 for 2011 and did not file one in previous
years. Just obtained client's information in the past few days. Of
course, the deadline for filing forms 1099 to IRS has passed.
Anyone have any thoughts for how to handle this situation? I know the
proper answer is to answer 'YES' to both questions .... but, should I
advise the client to prepare and file the appropriate 1099s NOW and go
ahead and file them and try to seek 'forgiveness' if a penalty is assessed?
As a 'little guy' (or 'gal' - just doesn't sound the same though LOL)
out here doing tax returns, I would like to thank everyone in this
newsgroup for sharing all of their wisdom!
Cathy H.
Ellsworth, KS
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
they are suggesting clients handle this.
On the various business forms this year - including Schedule F and C for
Form 1040 (and 1120, etc.) - there are the new questions I and J
(references from Form 1040 Schedule C) asking if you made any payments
in 2011 that would require you to file Form(s) 1099 and if yes, did you,
or will you file all required forms 1099?
Client has a schedule C with approximately $1500 +/- rent expense paid.
Client did not file 1099 for 2011 and did not file one in previous
years. Just obtained client's information in the past few days. Of
course, the deadline for filing forms 1099 to IRS has passed.
Anyone have any thoughts for how to handle this situation? I know the
proper answer is to answer 'YES' to both questions .... but, should I
advise the client to prepare and file the appropriate 1099s NOW and go
ahead and file them and try to seek 'forgiveness' if a penalty is assessed?
As a 'little guy' (or 'gal' - just doesn't sound the same though LOL)
out here doing tax returns, I would like to thank everyone in this
newsgroup for sharing all of their wisdom!
Cathy H.
Ellsworth, KS
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
paulthomascpa
Mar 15, 2012, 9:39:18 AM3/15/12
to
"Cathy" <coun...@eaglecom.net> wrote
> Just wanting feedback on how others would suggest handling this or how
> they are suggesting clients handle this.
>
> On the various business forms this year - including Schedule F and C for
> Form 1040 (and 1120, etc.) - there are the new questions I and J
> (references from Form 1040 Schedule C) asking if you made any payments in
> 2011 that would require you to file Form(s) 1099 and if yes, did you, or
> will you file all required forms 1099?
>
> Client has a schedule C with approximately $1500 +/- rent expense paid.
> Client did not file 1099 for 2011 and did not file one in previous years.
> Just obtained client's information in the past few days. Of course, the
> deadline for filing forms 1099 to IRS has passed.
>
> Anyone have any thoughts for how to handle this situation? I know the
> proper answer is to answer 'YES' to both questions .... but, should I
> advise the client to prepare and file the appropriate 1099s NOW and go
> ahead and file them and try to seek 'forgiveness' if a penalty is
> assessed?
If 1099 forms should have been issued, then issue them. I have not seen the
> they are suggesting clients handle this.
>
> On the various business forms this year - including Schedule F and C for
> Form 1040 (and 1120, etc.) - there are the new questions I and J
> (references from Form 1040 Schedule C) asking if you made any payments in
> 2011 that would require you to file Form(s) 1099 and if yes, did you, or
> will you file all required forms 1099?
>
> Client has a schedule C with approximately $1500 +/- rent expense paid.
> Client did not file 1099 for 2011 and did not file one in previous years.
> Just obtained client's information in the past few days. Of course, the
> deadline for filing forms 1099 to IRS has passed.
>
> Anyone have any thoughts for how to handle this situation? I know the
> proper answer is to answer 'YES' to both questions .... but, should I
> advise the client to prepare and file the appropriate 1099s NOW and go
> ahead and file them and try to seek 'forgiveness' if a penalty is
> assessed?
IRS send a penalty on late filed 1099's in the past unless they were
really-really late, or the taxpayer was told to issue 1099's in a prior exam
and still refused. Sometimes despite the best of intentions and accounting
records, which all our clients keep, you catch the need to issue a 1099 for
someone in March or April....or May or June.... and I doubt the Service
wants to penalize someone to the extent that they may not do the right thing
and issue to avoid said penalty.
Oh, and I don't mark "yes" and "yes" if I know that 1099's didn't need to be
issued and therefore were not issued.
--
Paul Thomas, CPA
www.paulthomascpa.com
removep...@yahoo.com
Mar 15, 2012, 3:55:27 PM3/15/12
to
On Thursday, March 15, 2012 6:39:18 AM UTC-7, paulthomascpa wrote:
> "Cathy" wrote
> > On the various business forms this year - including Schedule F and C for
> > Form 1040 (and 1120, etc.) - there are the new questions I and J
> > (references from Form 1040 Schedule C) asking if you made any payments in
> > 2011 that would require you to file Form(s) 1099 and if yes, did you, or
> > will you file all required forms 1099?
Does anything bad happen if you mark Yes and No?
> If 1099 forms should have been issued, then issue them. I have not seen the
Isn't sending a 1099-MISC a complicated affair? You can't just download the form online, fill it out, and mail it, right?
> "Cathy" wrote
> > On the various business forms this year - including Schedule F and C for
> > Form 1040 (and 1120, etc.) - there are the new questions I and J
> > (references from Form 1040 Schedule C) asking if you made any payments in
> > 2011 that would require you to file Form(s) 1099 and if yes, did you, or
> > will you file all required forms 1099?
> If 1099 forms should have been issued, then issue them. I have not seen the
ira smilovitz
Mar 15, 2012, 4:18:16 PM3/15/12
to
On Thursday, March 15, 2012 3:55:27 PM UTC-4, removep...@yahoo.com wrote:
> On Thursday, March 15, 2012 6:39:18 AM UTC-7, paulthomascpa wrote:
> > "Cathy" wrote
>
> > > On the various business forms this year - including Schedule F and C for
> > > Form 1040 (and 1120, etc.) - there are the new questions I and J
> > > (references from Form 1040 Schedule C) asking if you made any payments in
> > > 2011 that would require you to file Form(s) 1099 and if yes, did you, or
> > > will you file all required forms 1099?
>
> Does anything bad happen if you mark Yes and No?
Unknown. This is the first year these questions have been asked. In theory, the IRS could assess various penalties for non/late filing.
> On Thursday, March 15, 2012 6:39:18 AM UTC-7, paulthomascpa wrote:
> > "Cathy" wrote
>
> > > On the various business forms this year - including Schedule F and C for
> > > Form 1040 (and 1120, etc.) - there are the new questions I and J
> > > (references from Form 1040 Schedule C) asking if you made any payments in
> > > 2011 that would require you to file Form(s) 1099 and if yes, did you, or
> > > will you file all required forms 1099?
>
> Does anything bad happen if you mark Yes and No?
> > If 1099 forms should have been issued, then issue them. I have not seen the
>
> Isn't sending a 1099-MISC a complicated affair? You can't just download the form online, fill it out, and mail it, right?
Ira Smilovitz
Leonia, NJ
Mark Bole
Mar 16, 2012, 10:23:33 PM3/16/12
to
On 2012/03/15 13:18, ira smilovitz wrote:
>>
>> Isn't sending a 1099-MISC a complicated affair?
>
> [...]Entering the data on the forms is trivial.
>>
>> Isn't sending a 1099-MISC a complicated affair?
>
Not if you don't have the W-9's available, then it's not trivial.
--
Mark Bole
EA in CA
makbo at pacbell dot net
Ron
Mar 17, 2012, 3:10:25 PM3/17/12
to
Cathy wrote:
> Just wanting feedback on how others would suggest handling this or how
> they are suggesting clients handle this. . . . ,
> Just wanting feedback on how others would suggest handling this or how
> On the various business forms this year - . . . there are the new
> questions . . . asking if you made any payments
> in 2011 that would require you to file Form(s) 1099 and if yes, did
> you, or will you file all required forms 1099? . . . ,
> Anyone have any thoughts for how to handle this situation?
I belong to two real estate investor associations in my area and this
question has come up recently regarding rental properties and the two new
questions about 1099's. For me, the issue was important because I (like
your client) neglected to issue 1099's in the past and didn't issue any for
2011. And, now I am suddenly confronted by those two questions (on a
Schedule E, I think) that specifically ask me whether I was supposed to
issue 1099's and, if so, did I or do I plan to issue them. If I knew back
at the beginning of 2011 that those questions were going to be asked, I
probably would have paid more attention to getting the required information
from contractors and issuing 1099's for 2011.
There was a panel discussion at one of our real estate investor meetings and
one CPA was on the panel and another participated from the audience. Both
CPA's have a lot of clients who are real estate investors with rental
properties. The consensus from the CPA's was that, in general, 1099 for
rental property expenses are not required.
And, here is what one person (not a CPA or accountant) wrote in an online
discussion forum among the real estate investor group:
"Because Congress and the IRS went back-and-forth on the issue in 2010 and
2011, confusion exists among landlords concerning the need to issue
1099-MISCs to those who provided goods or services claimed as expenses
against real estate rental income. One source of difficulty is that the 2011
1099-MISC form and instructions are IN ERROR regarding the issue because
they were printed before the original requirements were repealed.
The following characterization of the final law was provided by three IRS
policy officials having the title, "Senior Stakeholder Liaison, IRS Small
Business/Self Employed Division" to a meeting of the Association of
Government Accountants in Philadelphia on February 15. In summary:
Despite what it says on the 2011 form 1099-MISC, If your rental income was
"passive," you do NOT have to issue 1099s EITHER TO CORPORATIONS OR TO
INDIVIDUALS for expenses incurred against that income. Rental activities are
passive activities even if you materially participated in them, unless you
qualified as a real estate professional, in which case they are not passive.
You qualify as a real estate professional if you met both of the following
requirements:
1) More than half of the personal services you performed in all trades or
businesses during the tax year were performed in real property trades or
businesses in which you materially participated.
2) You performed more than 750 hours of services during the tax year in real
property trades or businesses in which you materially participated."
I hope this helps.
Alan
Mar 17, 2012, 11:59:50 PM3/17/12
to
On 3/14/12 10:42 PM, Cathy wrote:
> Just wanting feedback on how others would suggest handling this or how
> they are suggesting clients handle this.
>
> On the various business forms this year - including Schedule F and C for
> Form 1040 (and 1120, etc.) - there are the new questions I and J
> (references from Form 1040 Schedule C) asking if you made any payments
> in 2011 that would require you to file Form(s) 1099 and if yes, did you,
> or will you file all required forms 1099?
>
> Client has a schedule C with approximately $1500 +/- rent expense paid.
> Client did not file 1099 for 2011 and did not file one in previous
> years. Just obtained client's information in the past few days. Of
> course, the deadline for filing forms 1099 to IRS has passed.
>
> Anyone have any thoughts for how to handle this situation? I know the
> proper answer is to answer 'YES' to both questions .... but, should I
> advise the client to prepare and file the appropriate 1099s NOW and go
> ahead and file them and try to seek 'forgiveness' if a penalty is assessed?
>
> As a 'little guy' (or 'gal' - just doesn't sound the same though LOL)
> out here doing tax returns, I would like to thank everyone in this
> newsgroup for sharing all of their wisdom!
>
> Cathy H.
> Ellsworth, KS
>
Read all about it in the Wall St. Journal Tax Report for 3/16/12.
> Just wanting feedback on how others would suggest handling this or how
> they are suggesting clients handle this.
>
> On the various business forms this year - including Schedule F and C for
> Form 1040 (and 1120, etc.) - there are the new questions I and J
> (references from Form 1040 Schedule C) asking if you made any payments
> in 2011 that would require you to file Form(s) 1099 and if yes, did you,
> or will you file all required forms 1099?
>
> Client has a schedule C with approximately $1500 +/- rent expense paid.
> Client did not file 1099 for 2011 and did not file one in previous
> years. Just obtained client's information in the past few days. Of
> course, the deadline for filing forms 1099 to IRS has passed.
>
> Anyone have any thoughts for how to handle this situation? I know the
> proper answer is to answer 'YES' to both questions .... but, should I
> advise the client to prepare and file the appropriate 1099s NOW and go
> ahead and file them and try to seek 'forgiveness' if a penalty is assessed?
>
> As a 'little guy' (or 'gal' - just doesn't sound the same though LOL)
> out here doing tax returns, I would like to thank everyone in this
> newsgroup for sharing all of their wisdom!
>
> Cathy H.
> Ellsworth, KS
>
http://goo.gl/YmpkP
--
Alan
http://taxtopics.net
Cathy
Mar 18, 2012, 5:29:13 PM3/18/12
to
On 3/14/2012 11:42 PM, Cathy wrote:
> Just wanting feedback on how others would suggest handling this or how
> they are suggesting clients handle this.
>
> On the various business forms this year - including Schedule F and C for
> Form 1040 (and 1120, etc.) - there are the new questions I and J
> (references from Form 1040 Schedule C) asking if you made any payments
> in 2011 that would require you to file Form(s) 1099 and if yes, did you,
> or will you file all required forms 1099?
>
> Client has a schedule C with approximately $1500 +/- rent expense paid.
> Client did not file 1099 for 2011 and did not file one in previous
> years. Just obtained client's information in the past few days. Of
> course, the deadline for filing forms 1099 to IRS has passed.
>
> Anyone have any thoughts for how to handle this situation? I know the
> proper answer is to answer 'YES' to both questions .... but, should I
> advise the client to prepare and file the appropriate 1099s NOW and go
> ahead and file them and try to seek 'forgiveness' if a penalty is assessed?
>
> As a 'little guy' (or 'gal' - just doesn't sound the same though LOL)
> out here doing tax returns, I would like to thank everyone in this
> newsgroup for sharing all of their wisdom!
>
> Cathy H.
> Ellsworth, KS
>
THANKS for all of the input - When I referred to the 'proper answer is
> Just wanting feedback on how others would suggest handling this or how
> they are suggesting clients handle this.
>
> On the various business forms this year - including Schedule F and C for
> Form 1040 (and 1120, etc.) - there are the new questions I and J
> (references from Form 1040 Schedule C) asking if you made any payments
> in 2011 that would require you to file Form(s) 1099 and if yes, did you,
> or will you file all required forms 1099?
>
> Client has a schedule C with approximately $1500 +/- rent expense paid.
> Client did not file 1099 for 2011 and did not file one in previous
> years. Just obtained client's information in the past few days. Of
> course, the deadline for filing forms 1099 to IRS has passed.
>
> Anyone have any thoughts for how to handle this situation? I know the
> proper answer is to answer 'YES' to both questions .... but, should I
> advise the client to prepare and file the appropriate 1099s NOW and go
> ahead and file them and try to seek 'forgiveness' if a penalty is assessed?
>
> As a 'little guy' (or 'gal' - just doesn't sound the same though LOL)
> out here doing tax returns, I would like to thank everyone in this
> newsgroup for sharing all of their wisdom!
>
> Cathy H.
> Ellsworth, KS
>
to answer 'YES' to both questions ...' .... I was referring to the
specific situation I am dealing with - I was not suggesting that the
questions be answered blindly as YES and YES if no 1099s were required.
In the situation I refer to, there are 1099s that need to be issued,
so the proper answer to both questions should be YES. I will get them
prepared and issued. Thanks for the feedback!!
removeps-groups
Mar 18, 2012, 11:53:23 PM3/18/12
to
"Alan" <temp...@vacationmail.com> wrote in message
news:jk3mji$9l6$2...@dont-email.me...
How does it shine a light?
> But it also can shine a light on businesses that are underreporting their
> income,
> such as a restaurant that does a big cash business but declares income
> only equal
> to its credit- and debit-card payments.
news:jk3mji$9l6$2...@dont-email.me...
How does it shine a light?
> But it also can shine a light on businesses that are underreporting their
> income,
> such as a restaurant that does a big cash business but declares income
> only equal
> to its credit- and debit-card payments.
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