Terry D EA Posted October 13, 2023 Report Share Posted October 13, 2023 One of my clients who thinks they can do everything on their own, has paid subcontractors and issued form 1099MISC with the amount paid in box 3. Form 1099NEC should have been used. Is there any way to correct this? I have never had this happen or dealt with it in the past. Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 13, 2023 Report Share Posted October 13, 2023 They can be amended 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted October 13, 2023 Report Share Posted October 13, 2023 You would prepare 1099MISC, marked "Corrected" in the checkbox, with $0 in Box 3. Then issue new 1099-NEC with the amount in the correct box on that form. 2 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted October 14, 2023 Author Report Share Posted October 14, 2023 That makes perfect sense. I'll hit this guy up for it. Quote Link to comment Share on other sites More sharing options...
JohnH Posted October 15, 2023 Report Share Posted October 15, 2023 How many did he file? In an extreme case he might be liable for a $250 per form penalty. Knowing that, he might be incentivized to 1) pay you to get it right this year, and 2) pay you to do it right in the future. 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted October 15, 2023 Author Report Share Posted October 15, 2023 JohnH, you are correct on being subject to the penalty. I see three 1099MISC forms but from his expenses he may have missed a couple. This guy is a mess. You would think the penalties would get his attention. Personally, I doubt it. I have been charging him a substantial rush/last minute too lazy to get docs in a timely manner PITA fee each year. He only complained once and threatened me with going to another preparer. Needless to say, I invited him to go. Well obviously, he didn't he's still here and still getting charged for causing me to sit in front of my computer to beat the 12:00 midnight time. I'm going to nail him this year as he is screwing up Monday night football. I would normally say too bad so sad, but if is willing to pay the fees then I'm willing to collect them. I think Forrest Gump said it best. "Stupid is as Stupid does" 3 Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted October 16, 2023 Report Share Posted October 16, 2023 Maybe some of the recipients did not need to get a form at all? Corps for example. It is a nit issue for me, sending blindly to all based on 600 or for any amount at all. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted October 16, 2023 Report Share Posted October 16, 2023 I would have him call the receipients so they can file with the correct information. ie social security tax on the income. Although, today might be too late for them. Quote Link to comment Share on other sites More sharing options...
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