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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13341
Experience:  15years with H & R Block. Divisional leader, Instructor
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A 1099 was sent to the IRS on monies I receive from a usps

Customer Question

A 1099 was sent to the IRS on monies I receive from a usps lease not in my name.
Submitted: 10 months ago.
Category: Tax
Expert:  Robin D. replied 10 months ago.

Hello

Do you know the person that should have been responsible for the income instead?

Customer: replied 10 months ago.
I sold a business, and retained "the monies from the lease". The lease is in his name.
Expert:  Robin D. replied 10 months ago.

You still receive the actual amount owed though on the lease. In other words, the amount was received by you for this lease and you did not turn over the funds to any other person or entity?

Customer: replied 10 months ago.
That is correct
Expert:  Robin D. replied 10 months ago.

I am trying to understand if you can issue a 1099MISC to this other person but if you still have the right to the income and the income was paid to you then it is taxable to you.

You would be required to include the payment as income.

Expert:  Robin D. replied 10 months ago.

If the amount was not yours to keep then you could issue a 1099MISC to the rightful person, showing the deduction but that is not the case.

After you view my response, please post below if you need more information or if you need no further clarification a positive rating is appreciated.
I know rating takes an additional step and I truly appreciate it when you take the extra time!

Customer: replied 10 months ago.
The IRS says I owe them 5200.00 for 2014 because of 1099. It wiped out my EIC
Expert:  Robin D. replied 10 months ago.

That is terrible.

I wish I could tell you differently but if the income is yours it is not deductible unless you had any expenses for the payment. That would only reduce the amount though.

I wish I could tell you they are incorrect. Was the retention of lease payment part of the business sell?

Expert:  Robin D. replied 10 months ago.

My goal is to provide you with excellent service today. I wish I could have told you the IRS was not correct.

It’s been a pleasure working with you and I hope to assist you again soon!

When you actively click on a rating and click submit, that lets Just Answer know you were assisted and credits me for the time.

Expert:  Robin D. replied 10 months ago.

Checking back to ask if my answer addressed your situation

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