AGRICULTURAL PROGRAM PAYMENTS ON 1099-G

[Dan]

QUESTION:  Are you required in the ATX program and also in tax law to use form 1099-G that the government sends you to enter all information from that form in the tax program and link that to Schedule F or Form 4835?  Can you instead of using 1099-G, go to Schedule F, line 4a and do a jump to link field and enter your CRP payments under 3 (Other Agricultural Program Payments)?  The reason for this to happen is because some info needs to be on Schedule F and some info needs to be on form 4835. 

Does the IRS allow this to happen? 

If they don't allow this to happen you could enter a minus amount to back some items on the 1099-G out of schedule F but I am not sure of that either.    

[Lion EA]

I don't have both Schedule F and Form 4835, so maybe this isn't your whole answer. I do NOT enter Form 1099-G but just go straight to the 4835 and enter directly on the appropriate lines (last year was 3a and 3b).

That doesn't help with your issue of some of the reporting belongs on F and some on 4835 and IRS matching of the 1099-G.

[Dan]

Thank Lion EA for your response but I need someone who has both Schedule F and Form 4835 to deal with.  By your answer above you probably don't add Form 1099-G to your return.  When I add Form 1099-G to the return it has in box 7 of the 2020 return called agriculture payments where I put the total of payments there and then a link to Schedule F.  That links the amount to the proper line on Schedule F. 

The same could be said for Form 4835 as mentioned above after using Form 1099-G and linking it to Form 4835.  The IRS would be able to see you had the correct amount reported on 3a and 3b from your 1099-G even though you did not use that form in the program.  But how would the IRS deal with you taking part of payments to put on Form 4835, line 3a and 3b and part of the payments on Schedule F, line 4a and 4b?  

[Lion EA]

Probably the same as part of your mortgage/Form 1098 on Form 8829 and part on Schedule A. Or, part of your Form 1099-NEC on Schedule C1 and part on Schedule C2, which I dealt with for a client last season.

I would probably NOT use the Form 1099-G but instead put the appropriate amounts directly on Schedule F and Form 4835. Or, if you want to avoid IRS matching problems, put the whole amount on or link Form 1099-G to the form with the greater part of the total 1099-G, subtract the excess under Other Expenses (you can label it "reported on form XXXX"), and enter that lesser amount on the other form. Keep notes in case you have to respond to an IRS letter in a couple years.

As long as you report the amounts where they belong, report the total from the 1099-G between the two forms, and are reporting where appropriate for business purposes (NOT to avoid SE tax, for instance), you'll be able to explain what happened if questioned.

[mcbreck]

On 1/11/2022 at 10:32 PM, Lion EA said:

Probably the same as part of your mortgage/Form 1098 on Form 8829 and part on Schedule A. Or, part of your Form 1099-NEC on Schedule C1 and part on Schedule C2, which I dealt with for a client last season.

I would probably NOT use the Form 1099-G but instead put the appropriate amounts directly on Schedule F and Form 4835. Or, if you want to avoid IRS matching problems, put the whole amount on or link Form 1099-G to the form with the greater part of the total 1099-G, subtract the excess under Other Expenses (you can label it "reported on form XXXX"), and enter that lesser amount on the other form. Keep notes in case you have to respond to an IRS letter in a couple years.

As long as you report the amounts where they belong, report the total from the 1099-G between the two forms, and are reporting where appropriate for business purposes (NOT to avoid SE tax, for instance), you'll be able to explain what happened if questioned.

Like in your paragraph two - I'd enter the 1099-G, back out whatever needed to go on a different form and put notes in the return. I put the notes as much as possible right in the lines where I enter them manually so it shows up on our "Statements".

 

When I started doing taxes I'd skip some forms and enter directly - almost every time we'd get a tax amount due letter as the IRS would just add the income because we failed to report the form. This happened to me when a company I work with sent me a 1099 in April and I'd already filed my own return. I had included the income so I just did an amended, added the 1099 and reduced my sales by the same amount and the IRS was fine with it. Now, I always wait for their 1099 even though I don't think they are required to send me one.

[Dan]

What about this idea?  Put the total amount of the 1099-G (agricultural program payment) on both the Schedule F (line 4a) and Form 4835 (line 3a).  Then put the taxable amount that should be taxed on Schedule F (line 4b) and the taxable amount that should be taxed on Form 4835 (line 3b).  There is only one Form 1099-G which has both Schedule F and Form 4835 income.  I don't know if it is wise to add a second 1099-G to the ATX program since there is only one received.