schirallicpa Posted June 3, 2009 Report Share Posted June 3, 2009 Maybe that's a really bad question. The thing is, we issued 1099s for an attorney group. You know how attorney's are at providing accounting info. So, in total, the 1099s are okay. Individually, they vary between the 5 attorneys, +/- $750 amoungst them. In the big picture, they will be annoyed that they have to amend individual tax returns for small amounts that will make negligible changes to their tax returns. On the other hand, the numbers they gave me were wrong and I know they haven't been properly reported. So - amend 1099s, (and I prepare 1 of the 5 1040s, so there's another 1040x for me) and listen to them moan. Or adjust their 2009 1099s for the give or take of 2008. I guess if the 1099s in total were wrong, and if any of them were at least over 1000 dollars wrong, I would just go ahead and amend 1099s. But, really, is it worth it? BTW I discovered this when preparing their corporate return. So, the corp return is reporting total comp correctly, regardless. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 3, 2009 Report Share Posted June 3, 2009 Given that the changes would not be material in size, I'd probably just ignore them for reporting, unless the attorneys WANT them to be corrected. In other words, let the clients decide, and not take on that decision as your call. Quote Link to comment Share on other sites More sharing options...
MAMalody Posted June 3, 2009 Report Share Posted June 3, 2009 If I recall correctly, the IRS considers a deminimus adjustment to be one with a total tax bite of less than $25. My guess is that you are talking greater than that. The average looks to be in the order of $40 to $60 dollars. In audit the IRS would not make this a deminimus (did I spell that right?) adjustment and not worry about it. I think the best course, would be to advise the client in writing of the situation, pointing out the originals were prepared on the data supplied by them and advise them that the 1099s should be corrected, also explaining the $50 penalty per 1099 that is wrong and not corrected. Let them make the call. In this way you are covered, the ball is in their court, and you have demonstrated that the original error was not your fault. After all, you can only do what the client asks you to do. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 3, 2009 Report Share Posted June 3, 2009 Actually, I've been told by IRS employees that the de minimus cut off is $50. Processing a change costs them that much. Quote Link to comment Share on other sites More sharing options...
MAMalody Posted June 3, 2009 Report Share Posted June 3, 2009 You are probably correct. I was going by memory when I was an auditor. I appreciate the update and the subtle way you correct my spelling of de minimus (deminimus). Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted June 4, 2009 Author Report Share Posted June 4, 2009 Thanks for your advice. I appreciate it!! Quote Link to comment Share on other sites More sharing options...
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