Chrisbry Posted February 4, 2008 Report Share Posted February 4, 2008 Senario: Client gets W-9's on subcontractors, I file 1099-misc every year for them. Friday, Client gets a call from someone. This person got a letter from IRS that there was income unreported under his EIN. Ok -- I tell my client to contact their sub, and YES it is his ID (he got out his letter). So we issued the 1099's correcty (and I triple checked the EIN number on the 1099 -- which were efiled BTW) This other person wants US to issue a zero 1099 so the IRS will take it off his account. I told my client that we issued the 1099 correctly and unless the IRS tells us otherwise, the issue is between this person and the IRS. We can't issue a 1099 with ZERO as corrected unless the subcontractor comes back with a different number. Has anyone ever had a problem such as this? Is it possible that TWO people have the same EIN? I just don't understand unless the IRS screwed up {imagine that} Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 4, 2008 Report Share Posted February 4, 2008 Is this a scammer trying to get info from you? My first thought is this guy is trying to get info from you. Never heard of the IRS issuing the same EIN twice. I would not re-issue the 1099. I would make the guy send in a w9, and if the EIN's were the same, I would call the IRS and ask them to explain how you got 2 W9's with the same number. Good luck. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted February 5, 2008 Report Share Posted February 5, 2008 Agree with bulldog, just adding, a long time ago I had the same problem and the IRS computer had the wrong EIN entered somehow. It is the other person's problem to tell the IRS they are wrong and he does not and never did work for your client. If I understand this correctly. Quote Link to comment Share on other sites More sharing options...
Chrisbry Posted February 5, 2008 Author Report Share Posted February 5, 2008 Agree with bulldog, just adding, a long time ago I had the same problem and the IRS computer had the wrong EIN entered somehow. It is the other person's problem to tell the IRS they are wrong and he does not and never did work for your client. If I understand this correctly. Correct. We never issued this guy a 1099 as he never worked for us. My client is one of those that thinks the IRS is out to get them around every corner! It took me 15 minutes to convince her she did nothing wrong! LOL Quote Link to comment Share on other sites More sharing options...
jainen Posted February 5, 2008 Report Share Posted February 5, 2008 >>I just don't understand unless the IRS screwed up<< Somebody is wrong. Could be the client, the preparer, the contractor, the IRS, or the unknown whiner. All in all, my guess (and it is just a wildly unsupportable guess) would be the contractor, in spite of "his letter." Maybe even BECAUSE of his letter--it's a pretty pat alibi; I wouldn't necessarily expect a company to manage it. But I don't mean anything by that. At any rate, I don't think there is anything for the preparer to do about it. Tell the inquiring one that the IRS has all the information about who got your 1099, and it is up to them to investigate. Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 5, 2008 Report Share Posted February 5, 2008 I had a friend years ago that got a letter from the IRS stating that she had unreported income from California (she was in Alabama). Turns out that two people actually had the same social security number. They both applied for a social security number on the same day in the same town and they both had the same name except for the middle initial, but they did not know each other. This was back in the days when people applied for social security numbers after they were grown and started to work. Gene Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 5, 2008 Report Share Posted February 5, 2008 Yes, and I had a client who had an EIN that he operated under for 13 years, and suddenly the IRS informed him that he was using a number that had never been issued. Amazingly, I had a copy of the original letter from the IRS assigning that number to him. It still took three letters, but eventually they 'assigned' his old number to him again, to get their records straight. Of course, they never came right out and admitted that the error was theirs, but anyone that thinks the IRS never makes mistakes is dumb. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 5, 2008 Report Share Posted February 5, 2008 Yes, and I had a client who had an EIN that he operated under for 13 years, and suddenly the IRS informed him that he was using a number that had never been issued. Amazingly, I had a copy of the original letter from the IRS assigning that number to him. It still took three letters, but eventually they 'assigned' his old number to him again, to get their records straight. Of course, they never came right out and admitted that the error was theirs, but anyone that thinks the IRS never makes mistakes is dumb. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 5, 2008 Report Share Posted February 5, 2008 >>anyone that thinks the IRS never makes mistakes is dumb<< How true. But it's just as dumb to think it's always the IRS making the mistake. Quote Link to comment Share on other sites More sharing options...
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