We installed solar panels on our roof last year. We received
after-the-fact rebates from both the state and the city; the
amount of the city rebate was $2,640. It was our understanding
that both rebates were taxable. We received a 1099-MISC from
the state, but none from the city.
I contacted the city to find out why not, and I received the
following response: "The City of Boston doesn't send out 1099s
for grants including both solar and energy efficiency
programs."
This raises a whole raft of questions about which I'm hoping
the experts here might have some insight:
* Are 1099's optional under the law, i.e., is it up to the
city to decide whether to issue them?
* Does the answer to the previous question depend on whether
the amounts paid are taxable?
* Under what circumstances would a solar panel installation
rebate paid by the city be non-taxable?
* Is the issuance of a 1099 ipso facto proof that the payment
it documents is taxable?
* If the city is required by law to issue such 1099's, then
what's the best way to bring its failure to do so to the
attention of the IRS in a way that might actually cause it to
take action?
Thanks.
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