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IRS sent the following message to its employees this morning:

Date: 01/18/2008

Social Security Benefits Misstated on 1099-SSA

The Social Security Administration has supplied the wrong tax information to
about 2.7 million Americans. The incorrect data was contained on some
1099-SSA forms sent out earlier this month.

1099-SSAs are sent to people who receive Social Security benefits, reporting
benefits they received during the year. Benefit information is needed to
file income tax returns.

The incorrect forms over-reported the amount of benefits received by some
Social Security beneficiaries who purchase Medicare Advantage or
prescription drug plans under Social Security parts C and D. The incorrect
information is in Box 3, Benefits Paid, of the form.

In some cases, Social Security computers preparing the 1099s included
premiums for plans paid in 2006 as part of benefits received in 2007.

Corrected forms will be sent to all affected Social Security recipients, and
to the IRS, by the end of the month.


Condor

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Somewhere I saw a complaint about an error on the Social Security
Administration 1099 form for 2007. I've searched the current postings
and see no reference here.

However, I personally received an SSA-1099 with a significant error.
When I called and reported it, the agent acknowledged that there had
been errors on a great many reports, and that corrections would be
issued within the next couple of weeks.

This post warns all preparers that there may be an error, and if the TP
has accurate records (including their notice of 2007 benefits), a cross
check would be advisable. The error in my case involved too high a
figure for Part D Prescription Benefits -- thus raising the possibility
that a TP who itemizes might overstate their medical expense.

Please be advised that there may be a corrected SSA-1099 on the way, and
verification would be recommended.

Bill

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >