jklcpa Posted April 1, 2019 Report Share Posted April 1, 2019 Client is unsure if 1099 was issued for the sale of her former residence, and the gain IS definitely fully excludable and doesn't exceed the $250K exclusion for a single person. The state has a newish form that asks various questions to determine whether gain is taxable, excludable, exempt, etc, in order to determine if state income tax should be withheld from the settlement, but the settling attorney didn't fully complete the form (ugh!), so that is no help. The fact that no box was checked to indicate exclusion makes me wonder if a 1099 may have been issued. Would you pull a transcript to see if a 1099 was filed, just report it anyway with code H even if 1099 may not have been issued, or not report it and hope the client doesn't get a notice? IRS transcript page says that the report may not be fully updated for the current year possibly until July. These helpless clients are making me more than a little short-tempered at this point. Grrr! Quote Link to comment Share on other sites More sharing options...
scottmcfly Posted April 1, 2019 Report Share Posted April 1, 2019 What is the downside of assuming that 1099S was issued and reporting it on 8949 with exclusion code? That's what I do. Better than client getting a letter in a couple of years. ( and then me having to deal with it then) 7 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 1, 2019 Report Share Posted April 1, 2019 I always report them, regardless of 1099-S. Then no chance of a notice later. 5 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 1, 2019 Report Share Posted April 1, 2019 A wage and earnings report from the IRS should solve the mystery. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted April 1, 2019 Report Share Posted April 1, 2019 I am seeing most lawyers around here include a substitute form 1099S in the closing packet. Then the client tells me they never got a tax form, and even if they look through the packet they will most likely overlook it because it doesn't really look like a tax form. I usually just put it on the return figuring what can it hurt? 3 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 1, 2019 Report Share Posted April 1, 2019 I put it on the return. Quick and easy. 3 Quote Link to comment Share on other sites More sharing options...
Max W Posted April 1, 2019 Report Share Posted April 1, 2019 2 hours ago, ILLMAS said: A wage and earnings report from the IRS should solve the mystery. Wage & Income transcripts are not available until the end of May and the issuer, being a lawyer probably wouldn't have reported it to the IRS, anyway. 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 1, 2019 Author Report Share Posted April 1, 2019 1 hour ago, Max W said: Wage & Income transcripts are not available until the end of May and the issuer, being a lawyer probably wouldn't have reported it to the IRS, anyway. Exactly, and I don't like to report anything to IRS that isn't required or necessary. Since I'm unsure, it will be reported. The post was as much as rant as anything else. Part of my annoyance is that this person comes to me every few years and does her returns by hand in other years. She makes little mistakes here and there, and she carries out the results to include the cents. I'm just really fed up with people in general right now. 7 Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 1, 2019 Report Share Posted April 1, 2019 This sounds like a client that deserves a significant fee increase ! 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 1, 2019 Report Share Posted April 1, 2019 Report. Hike the fee. 1 Quote Link to comment Share on other sites More sharing options...
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