1099 - MISC BOX 6 - questions

[taxbrewster]

Hi everyone, I have a doctor who loves to file on Oct 15, but got his stuff to me early.
Usually pretty easy return - cut and dry. This year along with his large w2 - gave me 3 different1099s with numbers in box 6. With no explanation - I am currently trying to follow up with him but impossible to get a hold of....and of course gave me the standard nothing changed this year in the package he sent along with his organizer.

#1 - 1099 with income in box 6 - his name his SS#

#2 - 1099 with income in box 6 - his name / his office's EIN

#3 - 1099 with income in box 6 - him name / his SS# but then in the recipient field - "1099 Purposes only" with all his info.

Are these just for reporting purposes by the health care companies OR are all these taxable? I am not aware of him doing any side work...

How are these reported?? Have not come across this before.

 

Thanks!!

 

[Max W]

I treat these the same as if they were in Box 7 and should be added to gross income, unless they are already included.

As for item #2, you will have to find out if he or the office received the payment, if there are other MD's or providers in the office.

If not, it is all his.

[Catherine]

As Max W said, the key is "unless they are already included."  Figuring *that* out will be the trick.  #2 sounds suspicious for belonging to his practice rather than to him (depending on structure those could be the same for tax purposes, of course).  #3, regardless of the "1099 purposes only" verbiage (which just sounds stupid; what else is a 1099 FOR if not 1099 "purposes" I mean really), is still income unless a duplicate of other reported income.  Report all income, if double-counted put in an offset somewhere.  Adjustment to gross receipts or, if you have more room for notes there, an "adjustment for double-reported income" expense line.

[joanmcq]

They are likely insurance payments of some sort.  I've seen this kind of thing before; some companies require the payments to be to the billing physician not the practice.  You need to find out if he had to sign over the payments or if they actually came to him independent of his salary. 

[taxbrewster]

Thanks for the input. It looks like he takes the income on 2 of the 3 after speaking with him. The other 2 were separate gigs - flu shots for an offsite job. #2 was in fact something that his office did in fact include in his w2 earnings, so I am just going to back that one out. Thank you for the comments and answers!