schirallicpa Posted January 15, 2012 Report Share Posted January 15, 2012 I have a number of clients who have paid me more than $600, which is not new this year. But because I just had a client audited, and the IRS was all over the fact that 1099s had not been issued to me (this was a 2008 return) I am really wanting my clients to issue 1099s like they are supposed to this year. But - maybe I'm just not a good sales person - I hate contacting the client to say - Hey you need to give me a 1099, and then sticking them with another fee to do it for them. But I sure am not doing it for free. And when they say - "What? What do you mean I have to pay you for you to give yourself a meaningles piece of paper. Aren't you the accountant? Don't you keep track of those figures? Why should I have to give you money for what you already know and have?" right - good point. Weren't CPA's once exempt from having to receive 1099s? Didn't the IRS once trust us? It's very frustrating. I'm trying to come up with a form letter to sent out to these clients. If I were the client though, I would be P-O'd. Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 15, 2012 Report Share Posted January 15, 2012 You need to change your mindset. Your client's are not giving YOU the 1099 to tell YOU what they paid you. The 1099 is being prepared to tell the government what you were paid. Now that said, I assume you are talking about businesses issuing you 1099's. Individuals are under no compulsion to issue 1099s. Part of your approach is to tell your clients that, simply put, it is the law. And there are serious penalties for violating the law. Ignoring the law is the same as violating the law. You should have no problem encouraging your clients to abide by the law. In fact, that is part of your job - to keep them compliant. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted January 15, 2012 Author Report Share Posted January 15, 2012 Yes - trades and business clients are the ones who must issue 1099s. A lot of which are small proprietors that just do not like spending more money. We also had to hit our payroll clients this year with extra paperwork and associated fees. I know - I'm grumbling! It is money in my pocket. But it just seems so unnecessary. Say - do estates or trusts need to issue 1099s to me? Hadn't thought about that yet? Quote Link to comment Share on other sites More sharing options...
Edward Posted January 16, 2012 Report Share Posted January 16, 2012 All clients that I do the bookwork in addition to their taxes, I make up the 1099's for them cause they don't even know what I am talking about. Anyway, I have all the info and its much easier for me to make the 1099-Misc for them. I do, however get them to sign the 1096's. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 16, 2012 Report Share Posted January 16, 2012 This is a non-issue. As long as YOU correctly report all income, there is no issue. If your client is not willing to listen to your advice, thereby complying with the rules, it is HIS issue if he gets audited. The expense he was supposed to issue a 1099 for will be disallowed. The fact that you claimed the income correctly, leaves you clear. I have stopped babysitting clients after several years of the same thing. Penalties can be a great motivator to listen to the tax accountant professional. Quote Link to comment Share on other sites More sharing options...
Randall Posted January 16, 2012 Report Share Posted January 16, 2012 If the client has other 1099s, just include yourself. Is that really worth an extra charge? If you're the only one, hey do it without charge. If the additional fee is a major issue, increase the regular fee and just consider the 1099 inclusive. Quote Link to comment Share on other sites More sharing options...
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