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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am a Realtor. My broker received the check for a transaction

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I am a Realtor. My broker received the check for a transaction of mine on Dec 31st. They are attempting to give me a check today, Jan 2nd that is dated Dec 31st. They are saying they will 1099 me on the amount for 2012.

They never attempted to give me the check on the 31st.

Are the legally obligated to 1099 me for 2012 or can the 1099 me for 2013?

Since they are handing me the check today, can I insist the check have the actual date they are giving it to me be on the check?
Thank you for your question, and thanks for using JustAnswer. Happy New Years! Your issue is handled under the Constructive Receipts doctrine, which states "You have constructive receipt of income when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. If you authorize someone to be your agent and receive income for you, you are treated as having received it when your agent received it." SOURCE

So, since your broker is your agent, and they received the payment on December 31, you also received the payment on December 31. So, they are correct in issuing your check dated December 31 and issuing you a 1099 for 2012.

It's not when you get the check, it's when it's made available to you. I know you could argue that you didn't get the check until today, but your agency (the broker) did get receipt on the 31, and therefore you are presumed as getting the check on that same day as well.

I hope this makes sense. Please follow up with me if you need anything additional. Have a happy New Years and thanks again for coming to our site and using our service.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

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Thank you for the positive rating. Please remember me the next time you have a question. Simply enter "MyVirtualCPA" in the subject of your question, and it will be routed directly to me. Thank you again for using JustAnswer