Thanks for the information. I had been under the impression
that everything in box 7 meant self-employment income,
meaning extra tax on it.

I didn't want to do anything that would require me to be
audited. But if all they will do is send a letter and
require me to send the 1099-misc and a copy of sch E, I can
live with that. Thanks very much for all of your wisdom.

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danaThatsCauseWhy wrote:

- quote -

It Sounds as if the person filling out the 1099 made a
mistake and filled it out as if intended for the interrum
pastor (who is often treated as a 'nonemployee').

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"danaThatsCauseWhy" <danahibbs[at]hotmail.com> wrote:

- quote -

I'd put the amount on line 21, and then another line there
backing it out with a description that says this is
correctly reported on Schedule E. No SE tax due when you
provided no substantial services. The church treasurer
probably didn't know any better.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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Get the issuer to correct the form 1099misc. This happens
often. File the return with the rent reported on Schedule E
like it should be and not on Sch. C.

If the issuer does not correct the form 1099 before the 4/15
deadline, file your return with a letter and copy of the
1099 explaining the difference.

Missy Doyle

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danaThatsCauseWhy wrote:

- quote -

Report as rent on your Sch E. If IRS sends you a letter in
2007 (which is about how long it will be before the matching
is complete) just send back a response that you included the
amount on your Sch E and send a copy of Sch E. Same thing
happens every year for one of my clients because the issuer
will not issue the 1099 misc correctly. IRS has always
accepted and sends back a letter which says so.

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danaThatsCauseWhy wrote:

- quote -

You only pay SE tax on self-employment income. Treat the
payment as rent and complete Schedule E. Cross out the
amount in Box 7 and put it in Box 1 of the 1099 and attach
it to the return as a way of explanation.

--
Alan
http://taxtopics.net

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"danaThatsCauseWhy" <danahibbs[at]hotmail.com> wrote:

- quote -

Yes.

- quote -

No. It is nice, but not necessary, for the church to
correct the 1099. If they don't and IRS inquires, you
explain. Oddly enough, this isn't the first incorrect 1099
they've ever dealt with.

--
Phil Marti
Clarksburg, MD

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danaThatsCauseWhy wrote:

- quote -

You've hit the nail on the head.

First, 1099's are required to be issued by profit making
organizations, so the church did right.

The amount should have been in block one, not block 7 as you
suspect.

ChEAr$,
Harlan Lunsford, EA n LA
Wed 9 Mar 2005

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"danaThatsCauseWhy" <danahibbs[at]hotmail.com> wrote

- quote -

Yup, it should.

Get them to fix their problem.

- quote -

In reality, no. You need to account for it on the proper
form for the type and amount of income that it is.

The issue will come up, you'll get a notice, and you can
explain it to the IRS if/when need be. But I'd get the
church to fix it.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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I am renting a house to a church for their temporary pastor.
I received a 1099 misc for the rent they had paid me. But
they have the rent listed under nonemployee compensation.
Shouldn't this be under rents? If they leave it under
nonemployee comp., wont I have to pay self-employement taxes
on it?

Thanks for any help

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