taxquestions" <taxquestions[at].com> wrote:

- quote -

Depends on whether you get caught or not :-).

What do you do if the payer corrects the 1099?

It is not unusual for my reported income to vary from my
1099's for a variety of legitimate reasons. I have
occasionally been questioned by the IRS when I have reported
less than what is on the 1099; and have always had
satisfactory responses.

Hmmm -- I've never been questioned by the IRS for reporting
more than is on the 1099. I wonder why...

--ron

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You should report what you received, even if it is larger
than what is on the form 1099misc.

Missy Doyle

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You should report what you received, even if it is larger
than what is on the form 1099misc.

Missy Doyle

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taxquestions wrote:

- quote -

Very simply the ramification is that it is all wrong.

Several clients this year had 1099's for much less than
their gross receipts. One case it was clearly that the
payer was reporting only the net amount after he had
deducted business expenses that the recipient had reimbursed
him for. (True gross was 30; expenses deducted by payor were
13, and the amount on the 1099 was 17)

Just report the correct amounts and maintain your
documentation.

ChEAr$$$$$,
Harlan Lunsford, EA n LA

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"taxquestions" <taxquestions[at].com> wrote:

- quote -

You will be designated a Romper Room "Do-Bee."

Remember that the 1099 is for IRS's information, not yours.
You should prepare your return from your own meticulous
records.

Phil Marti
Clarksburg, MD

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taxquestions[at].com (taxquestions) asked:

- quote -

The proper thing to do, of course, is to report your
self-employment income according to your own (presumably
accurate) records. You are the individual filing that
return, and affirming its accuracy and honesty.

There are two possibilities: Your records are incorrect,
and you'll be reporting _too-much_ income *or* the issuer of
the 1099 made a mistake. In the latter case, a _corrected_
1099 may be on the way, and you'll just have to file an
amended return later. In the former, you'll be paying too
much SE tax.

Seems it would be wiser to contact the issuer, and review
your records in comparison with theirs -- thus finding the
error and fixing it.. Then you can file a correct return,
and never have to worry about it.

Bill

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What are the ramifications of reporting the underreported
compensation amount that I received on a 1099-Misc instead
of my own calculation which is higher?

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