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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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What should I do if a false/erroneous 1099 MISC was ...

Resolved Question:

What should I do if a false/erroneous 1099 MISC was filed against me and the filer refuses to correct?
Submitted: 9 years ago.
Category: Tax
Expert:  RD replied 9 years ago.

If you are certain that the Form 1099 MISC is incorrect and if the filer refuses to correct than I would suggest you to report the amount shown on Form 1099 MISC on your tax return(so that there is no mismatch with IRS numbers) and than claim a deduction of the incorrect amount as other expenses and explain that the deduction is taken to correct the incorrect amount reported on Form 1099 MISC via a note.

 

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

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Customer: replied 9 years ago.
On the web it states I should send a corrected 1099 with a cover sheet to the Service Center is this also necessary? If you have time, I appreciate your follow up very much. I really am not happy about puttting it on my return since it was supposed to be a discount credited to me in escrow on a purchase of a home.
Expert:  RD replied 9 years ago.

You are not the one issuing the Form 1099. It is the person who used your services. So, you cannot submit a correct Form 1099.

Btw, if it was a discount or rebate credited to you on purchase of home, you can report the entire amount on your tax return and than claim that amount as expense and mention that this was a discount you received on purchase of your home and has been adjusted against the basis of your home. It is not a non employee compensation.

 

 

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

RD and other Tax Specialists are ready to help you