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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I would like to know if a company paid via direct deposit (government

Customer Question

I would like to know if a company paid via direct deposit (government payor) to my medical business only $659,000 yet reported 1099 income of $782,000 how did this happen could they charge me for income on items they denied payment on when I was told they just deduct it from future orders? running into a huge tax issue due to this profit showing a lot larger. We are so stressed as now this is putting us into showing a huge profit for scorp and we will owe a ton of taxes for state and federal as our accountant never told us to withhold the proper amounts and on current profit we would owe over $100 in taxes according to him that we don't have, would IRS accept payments if we have a retirement account 457 and savings account for emergencies. Also could we pay some of the tax with the business distributions? Confused and stressed
Submitted: 7 months ago.
Category: Tax
Customer: replied 7 months ago.
Would owe $100,000 in taxes or more not $100.00
Expert:  Lev replied 7 months ago.
If incorrect amount was reported on 1099misc - the IRS regulations requires you to contact the payer and ask fro correction.If that amount was paid but later refunded - it is deducted as Returns and allowances.For instance - if you are filing schedule C - you may report that amount on line 2https://www.irs.gov/pub/irs-pdf/f1040sc.pdfand it will NOT be included into your gross profit.For S-corporation - that amount may be deducte***** *****ne 1bhttps://www.irs.gov/pub/irs-pdf/f1120s.pdfYou may use ANY funds to pay tax liability - regardless if these are distributions from the corporation or wages or loaned money.Questions?
Expert:  Lev replied 7 months ago.
.I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.

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