1099 Question.

efeezy

efeezy

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Oct 5, 2007
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I know, ask the accountant, and I will, but I wanted to see if anyone else has run into this in the past and how you dealt with it.

I got my 1099 from a network for last years earnings. However the company still owes me 3 months of payments (Oct, Nov. Dec) totaling around $15k. The 1099 they sent includes this money which I have yet to receive. Are they allowed to do this, since I haven't received those funds. I'm sure my accountant will just adjust my reported earnings, but it seems kinda shitty that the network would do that when they're slow as fuck to pay me on time anyway. Trying to get a hold of anyone in their accounting dept. is nearly a waste of time. Instructions on the back of the 1099 say that if there's an error to note it when the taxes are filed and then adjust the next year's earnings accordingly, which is probably what we'll end up doing.

Ever had this happen?
 


efeezy said:
I know, ask the accountant, and I will, but I wanted to see if anyone else has run into this in the past and how you dealt with it.

I got my 1099 from a network for last years earnings. However the company still owes me 3 months of payments (Oct, Nov. Dec) totaling around $15k. The 1099 they sent includes this money which I have yet to receive. Are they allowed to do this, since I haven't received those funds. I'm sure my accountant will just adjust my reported earnings, but it seems kinda shitty that the network would do that when they're slow as fuck to pay me on time anyway. Trying to get a hold of anyone in their accounting dept. is nearly a waste of time. Instructions on the back of the 1099 say that if there's an error to note it when the taxes are filed and then adjust the next year's earnings accordingly, which is probably what we'll end up doing.

Ever had this happen?
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the 1099 needs to be amended to show the correct amount, if you adjust your gross income for this there is a huge chance you will be audited. If they pay you in the next tax year then they issue a new 1099 that's all.
 
Just call the network and ask them to adjust it. Otherwise you need to pay your tax based on the 1099 (this is what they told the Government they paid you) . Otherwise if they wont fix it your probably screwed and will wind up having to pay the tax this year ( but you wont have to next year) . Good luck shouldnt be a big deal just make sure you do it asap
 
Your accountant should be able to easily adjust for this, however, you should also get the 1099 corrected - sounds a little shady on the network's part.
 
That's shady as FUCK. They can't 1099 unpaid income, not now, not EVER.

Call the motherfuckers and let them know you're on to their fucking game, and if they
don't issue a corrected 1099 most ricky-tick you will out them to the IRS yourself.

They are trying to reduce their own liability by padding yours. That's FUCKED.

Who is it, please?
 
Your accountant will most likely adjust your revenue down, assuming your business uses cash based accounting and not accrual based.

You should contact the network and tell them to file an amended 1099 though.
 
galacon said:
That's shady as FUCK. They can't 1099 unpaid income, not now, not EVER.

Call the motherfuckers and let them know you're on to their fucking game, and if they
don't issue a corrected 1099 most ricky-tick you will out them to the IRS yourself.

They are trying to reduce their own liability by padding yours. That's FUCKED.

Who is it, please?
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many networks, albeit fucking retarded, will 1099 based on what their system shows as earnings, not necessarily payouts.
 
papajohn56 said:
many networks, albeit fucking retarded, will 1099 based on what their system shows as earnings, not necessarily payouts.
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Really? Never had that happen to me with a network as yet, although I've seen it in tried in other industries- it's pretty universal that you don't book accruals to cash flow, which is what a tax statement is based on. The code on non-employee compensation is pretty clear- For the deduction to be valid and appear on a 1099-MISC it has to be PAID.

You can book accrued (but unpaid) revenue and liabilities on the balance sheet side, but not the cash side. Not for tax purposes, although people try sometimes, hence my rant- they usually know exactly what they are trying to pull when they do that, although I suppose it could be a mistake ( just a tres' retarded one).

I guess my main point is that OP demand a corrected 1099 be issued and re-filed: don't file with the bad one, even with a "note attached" or you may have a real mess to straighten out later, especially if they never PAY you...

Still like to know who this is, by PM if needs be- amateur mistakes with acctg101 like this don't exactly fill me with confidence ;)
 
Every year I have to say this, so here goes:

The IRS does not care what your 1099's say - they are a useless document that they do not even look at.

Your accountant should tell you this. Your profit and loss is based off of your profit and loss. You can't expect a different company to have their shit together about your finances.

tl;dr - Ignore 1099, acquire accountant.
 
^^ yes, all a 1099 does is help show the outgoing of the one that sent it.

dont base your numbers off 1099, get CPA and I also suggest a tax attorney as well on retainer basis for more detailed questions.
 
eliquid said:
I havent gotten any yet
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I swear they all wait until the absolute last day to send out 1099's. I'm still waiting on 3 I think. Not that it matters because I know my total deposited income for the year, but they wait forever to mail the damn things out, and we all need them for the books.
 
Unarmed Gunman said:
Every year I have to say this, so here goes:

The IRS does not care what your 1099's say - they are a useless document that they do not even look at.

Your accountant should tell you this. Your profit and loss is based off of your profit and loss. You can't expect a different company to have their shit together about your finances.

tl;dr - Ignore 1099, acquire accountant.
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I was going to mention this but since I'm not an accountant I wasn't sure if it was true. Last year a network didn't send me a 1099, another network sent one in like April. I included both networks in my taxes but just never gave the 1099 to my accountant. I called the accountant to let him know the situation and he said no worries, just keep the 1099 for yourself for records.
 
Unarmed Gunman said:
Your accountant won't even want to look at them, so why are they holding you up from doing your taxes? You don't need them for the books, they are only good for the shredder.
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It's not really holding up the taxes, but he always wants copies of them, so I try to oblige.
 
Unarmed Gunman said:
Every year I have to say this, so here goes:

The IRS does not care what your 1099's say - they are a useless document that they do not even look at.

Your accountant should tell you this. Your profit and loss is based off of your profit and loss. You can't expect a different company to have their shit together about your finances.

tl;dr - Ignore 1099, acquire accountant.
Click to expand...

Unarmed Gunman said:
Your accountant won't even want to look at them, so why are they holding you up from doing your taxes? You don't need them for the books, they are only good for the shredder.
Click to expand...

I am intrigued by this statement. What exactly do you mean by this? You may not need the physical piece of paper but the the numbers on it are definitely applicable. Your profit and loss is determined basically by gross income (1099's) - your expenses & deductions.

You cant "accurately" fill out your taxes without this info. Its on line 1 of your Schedule C. These are what the IRS has had reported to them. So lets say for example you have 4 1099's from four networks come in and this is all your income. If the reported amount is $100,000 and you put 85,000 on that line 1 you don't think thats going to put a red flag up?

Now I will be the first to say that your income or commissions dont mean jack shit and your accountant is going to help you manipulate the numbers. But he is going to do it through the use of deductions (you tell the IRS what your expenses are) to make your "net income" be what ever you want it to be.

I guess what I am trying to say is. If someone else is reporting to the IRS income info you need to make sure your returns match that or is easily cross referenced. You can make your expenses what ever you want them to be and the only way they will know any different is if they come audit you. As to the OP I still think he should just call the network up and get it fixed. And then have the accountant
 
It has to do with Accounts Payable and Accounts Receivable. In your intro accounting class (had to take a couple for my undergrad), your Accounts Payable (money that you haven't yet paid, but you can't count as an asset) is calculated as an expense, and money that is in Accounts Receivable (money people owe you but hasn't arrived yet) is counted as an asset.

I'm not an accountant, but that's my rational behind why you're seeing those 3 months on your 1099. They have to write off the expense. However, at the time you're doing your taxes, you just count that payment as a loss and you'll adjust it in the next year's taxes as a gain because technically, you haven't received the money within your previous year of business, but in the current 2011 year.
 
dmnEPC said:
I am intrigued by this statement. What exactly do you mean by this? You may not need the physical piece of paper but the the numbers on it are definitely applicable. Your profit and loss is determined basically by gross income (1099's) - your expenses & deductions.
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No it's not. Your profit and loss is determined by how much comes in and goes out of your bank accounts. You should already know how much your revenue and expenses were throughout the year, the 1099 is meant for the company sending them, not you. You can save them if you want, but they are rarely accurate so what's the point?

dmnEPC said:
You cant "accurately" fill out your taxes without this info. Its on line 1 of your Schedule C. These are what the IRS has had reported to them. So lets say for example you have 4 1099's from four networks come in and this is all your income. If the reported amount is $100,000 and you put 85,000 on that line 1 you don't think thats going to put a red flag up?
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The IRS has no use for a 1099 and will never request one in an audit - ask any accountant and they'll tell you the same thing. Line 1 on your schedule C is for your "gross receipts", it has nothing to do with what other companies reported that they paid you on your 1099.

dmnEPC said:
I guess what I am trying to say is. If someone else is reporting to the IRS income info you need to make sure your returns match that or is easily cross referenced. You can make your expenses what ever you want them to be and the only way they will know any different is if they come audit you. As to the OP I still think he should just call the network up and get it fixed. And then have the accountant
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You have no obligation to match your numbers with another company. If they fucked up their numbers, or are intentionally misleading the IRS, that's their problem. Just make sure your numbers are accurate, and that you aren't misleading the IRS. I've had 1099's be off by over $50k before and my accountant just laughed and said he's seen worse, and that's why they never look at them. My books are all that matters.
 
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