Level 4

1099 MISC with the wrong Recipent TIN

Forum|Forum|1 year ago
August 19, 2024
4 replies
5 views

My Client received a Legal Settlement for destroyed Lab facilities associated with his LLC.

The settlement was issued to his personal TIN on a 1099-Misc with box 3 showing the amount.

He has legal fees associated with the settlement paid by his LLC

Can I show the 1099 MISC on Schedule C with an explanation?

May not be able to get a new 1099-Misc with the correct information.

Thanks

ProSeries Tax

Level 15

Why not just attach the explanation without the Schedule C? Playing games like "Trick the IRS Computer" by adding to gross income may trigger an audit when the algorithm looks just at receipts, not deductions.

Level 4

Schedule C has other deductions and Income . Could I just add the 1099-MISC as other income on schedule 1 line 8 z and the legal expenses on Schedule C?

But this creates a miss match of income vs expenses ?

Lots of labs in Massachusetts

Level 15

Where is the mismatch?

Don't yell at us; we're volunteers

Level 15

Another one? How many clients do you have whose lab equipment was damaged?

From July:

https://accountants.intuit.com/community/practice-advice/discussion/client-s-llc-received-a-mutually-agreed-settelment-with-income/00/304309

Now I understand why TV shows such as CSI show lab techs in the field with guns. Protecting the sampling devices.

Don't yell at us; we're volunteers

Level 15

Are you (not) saying the LLC files as a partnership or corporation?

The more I know the more I don’t know.

Level 4

The LLC is filed on a Schedule C .the LLC has it's own EIN .

The Schedule C is filed with the clients tax return so it eventually all rolls up under his SS#

Level 15

Much ado about nothing.

Include the 1099-MISC income on the Schedule C the LLC is already filing.

The more I know the more I don’t know.

Level 15

Just curious.... what *kind* of lab 😉

HumanKind... Be Both

Level 15

Maybe this kind?

Level 15

Awwwwwwwwwwwww....... Labs are my favorite. Juno is only 17% lab, despite coming from a Lab rescue organization.

HumanKind... Be Both