Thanks for choosing JustAnswer.com. I will do my best to provide you with a clear and concise answer to your tax question based on the information that you have provided.
Generally, the IRS will consider anything reported on a 1099-MISC with non-employee compensation as income
that is taxable for self-employment
tax. However, given the fact pattern you have provided, the best argument that can be made is that this is interest income that should have been reported by the hospital on a 1099-INT
on schedule B
. I would (1) see if the hospital will amend the 1099-INT to reflect the fact that this is imputed interest income and (or instead, if the hospital won't change the 1099-MISC to a 1099-INT) (2) send a letter and documentation to the IRS that attests to the nature of the imputed interest income reported on form
It may not hurt to call a local
enrolled agent or CPA to help you with your correspondence to the IRS in this matter. They will be able to cite code and case law
in there responses, and act in your behalf (meaning you won't need to deal with them).
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