Have a Tax Question? Ask a Tax Expert
You can ask, but unless you remove yourself from that account, their 1099 reporting is technically correct. Don't expect the lender to just remove it per your request. They might, but only if you have had your name removed from the account.
Best is to remove your name from the account, or close the account and have the new owners open an account in their interests.
Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.
There is no real edit or amendment deadline for 1099s. I would plan on another way to resolve this, and that is to report the 1099 income reported to you, then tell IRS to check another taxpayer for the real recipient.
Here's how we do it:
Let's say it's a 1099-int for interest income. Open schedule B, and report the income as if it was yours. Then, on the next line, disclose the taxpayer that should report, like this:
XYZ bank 88
Interest reportable by ***** ***** Company, ID# ***** -88
That allows you to report the number IRS expected, and takes it off your return and tells IRS who should report it.
This is the easiest solution, and we have found out very effective in our tax practice.
Audit is unlikely.
The new owners should report the item. Send them a copy of the firm to remind them.