Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I just received a letter from the IRS questioning my filing

Customer Question
of a 1099-MISC. They...
I just received a letter from the IRS questioning my filing of a 1099-MISC. They indicate that I should have filed a Schedule C and pay employment taxes. The 1099 MISC reflects Non-employee compensation and is imputed interest from a hospital that gave me an interest free medical school loan when I signed an agreement to join their hospital out of medical school. I have since become employed by the hospital. I have paid federal/state taxes but no FICA etc. How should this be reported? Thanks
Submitted: 4 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 57 minutes by:
6/27/2013
Tax Professional: Phillip B, EA, Enrolled Agent replied 4 years ago
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
Verified
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 1099-MISC.

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).

If there are additional questions, please reply to this answer so that I may assist you further. If this answers your question, please rate my performance between OK and Excellent so that I may receive credit for my work. Thanks for your business.
Ask Your Own Tax Question
Tax Professional: Phillip B, EA, Enrolled Agent replied 4 years ago
Did my answer help with your issue? Is there any other questions which I may help you with?

Thanks for using JustAnswer, and allowing me to opportunity to serve you.

Before the question can be closed and I can be paid, you need to rate my service. Please click "OK Service" or better so that I am paid for assisting you. If you don't feel "OK Service" or better was received, please ask for further assistance. If I receive anything less than OK Service, I do not get paid but the Web site will still collect your payment.
Ask Your Own Tax Question
Ask Phillip B, EA Your Own Question
Phillip B, EA
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
704 Satisfied Customers
Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.

Phillip B, EA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I need to amend Form 1096/1099 to issue an additional 1099
I need to amend Form 1096/1099 to issue an additional 10991) Can I fill out form 1099 and 1096 with a black ink pen2) Does the total on Form 1096 only include the additional 1099 ( I had completed 109… read more
taxmanrog
taxmanrog
Master\u0027s Degree
700 satisfied customers
For form 1099-A what happens when the amount of the loan is
For form 1099-A what happens when the amount of the loan is less than the FMV of the property?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Filed W1040 for self-employment. Should I file amended return for HSH?
I was self-employed last year and I filed a W1040 tax form. Everything went through well. I did it through an H&R computer program. Currently I am in need of financial aid as I am going to college. I … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
1099-R with distribution code 3. Can I get an earned income credit?
If someone receives a 1099-R with a distribution code 3, can they qualify for earned income credit? The person receives his pension because he became disabled.… read more
Bizhelp
Bizhelp
Certified Public Accountant (CPA)
Bachelor's Degree
638 satisfied customers
I received a 1099-Int with an amount in box 11, Bond
I received a 1099-Int with an amount in box 11, Bond Premium, covered lots. Furthermore, there is an amount in box 1, Interest Income. Would I include the Box 11 amount in interest income or subtract … read more
abci168
abci168
Principal
27 satisfied customers
My bank send a 1099-misc for $1000 of interest instead of
My bank send a 1099-misc for $1000 of interest instead of 1099-int. It was checked at box 3 however I am not sure is business checking incentive constitute "prize winnings" ? Because otherwise I would… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
I am trying to reconstruct form 1099- from the Tax
I am trying to reconstruct form 1099-B from the Tax transcript since I did not receive the form, but I am not sure if it indicates "Short term covered" or "short term non-covered" based on the attachm… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I will be receiving 1099 income for the last 5 months of
I will be receiving 1099 income for the last 5 months of 2017. how do i figure medicare tax, social security tax, and federal tax, and what documents do i need to show payment of each on my 1040 for 2… read more
abci168
abci168
Principal
27 satisfied customers
Income from the leasing of cars...is it self employment
Income from the leasing of cars...is it self employment income? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
1099 treated as w2, how should I file taxes? FL. Not yet.
1099 treated as w2, how should I file taxes? JA: What state are you in? It matters because laws vary by location. Customer: FL JA: Has anything been filed or reported? Customer: Not yet JA: Anything e… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
S-corporate 100% owner incorrectly issued herself 1099-Misc
S-corporate 100% owner incorrectly issued herself 1099-Misc for health insurance premium payments for 2016. what is the best way to correct this situation now? To report amount reported on 1099 on sch… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
2016 FORM 1099 misc box 7. the company forgot to issue one
2016 FORM 1099 misc box 7. the company forgot to issue one more 1099-misc to contractor. the original 1099 and 1096 for other contractors had been mail out to IRS. so if we have to prepare this one ad… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
How do I report this? 1099 INT – Line 8 – Tax Exempt
How do I report this? 1099 INT – Line 8 – Tax Exempt Interest = 6,000 1099 INT – Line 13-Bond Premium Tax Exempt=1,500 1099 (Right Hand Side) Adjustments to Interest-Bond Premium Tax Exempt=1,100 Cash… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
1099 Int - What is the difference between 1099 int Line 13
1099 Int - What is the difference between 1099 int Line 13 bond Premium on Tax Exempt says 30,000 and ajustments to interrest portion which says adjustment to bond premium tax exempt $10,000?… read more
abci168
abci168
Principal
27 satisfied customers
Tax question - Form 1099, Line 8 Tax Exempt Interest
Tax question - Form 1099 , Line 8 Tax Exempt Interest reflects $500; OID 1099 is 0. Under heading Detail for tax exempt interest it says tax exempt interest is $300. Under Detail for Tax Exempt OID it… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
I received a 1099-misc from my former employer but it is not
I received a 1099-misc from my former employer but it is not listed on my wages and income transcript. Do I need to worry about it when I file my taxes. I have a w-2 from my current employer. I have f… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,230 satisfied customers
Wrt 1099 misc form... Non-employee compensation, box 7,
non-employee compensation, box 7, includes reimbursement money for miles driven while contracted. should these monies be counted as income, or can I leave them out, and explain the reason for doing so in a statement I attach to my sched. C?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x