Just another accounting error to cost me money!

[sfloriII]

Ugh.

I just got a 1099 from one of my clients. They're reporting to the IRS that I made $21,000 from them last year.

Close, but no cigar. I made approx $1,200 from them last year. Dumb stupid-ass accountants. I would have discovered the mistake weeks earlier if they had mailed the form to my current address, which I gave them over a year ago. Stupid lazy asses!!

What the FREAK!!!!

I'm still trying to get the stupid $2,600 back from the IRS that I didn't owe them in the first place from two years ago, now this crap! So I guess I'll have to send them $7,000 and hope that they'll return that money once I prove to them that I didn't make it. I know it may not be as bad as it seems, but I don't feel like sending the IRS an extra $7,000. They take enough of my freaking money as it is.

WTF.

PS And a strange ironic twist: I'll be directing one of their corporate broadcasts tomorrow. Damn crooks.

Get it fixed I got just got tagged for a BS 1099 from 1997 and the only thing I can do about it is pay. I hate takin it in the A like that.

[boneheaddoctor]

You should send them a Bill for $10,800 since they obviously underpaid you from what they reported...........adn if they complain tell them thanks to theem thats what you owed taxes on.

[cscmc1]

Ah, tax time. As a Guardsman, I can claim mileage to and from monthly drill (as I am more than 100 miles from my base). So I "commute." On the form 2106 you're asked to categorize mileage as business/commuting/other. Then they tell you not to count commuting mileage.... WTF?

Gotta love the IRS. Contradicting themselves. Looks like I'll list my mileage as "business" even though their description mentions Guard & Reserve members who COMMUTE.

Anyway, good luck with your predicament. Mine is small potatoes in comparison. I feel for ya!

[TwitchKitty]

Subtract out the difference above the line as an uncollectible receivable. Pay taxes only on what you collected.

[Lebenz]

Originally Posted by TwitchKitty

Subtract out the difference above the line as an uncollectible receivable. Pay taxes only on what you collected.

...and hire a collection company to go after the folks...

[mzsmbs]

call them and straigten the whole thing out.. i get these kinds of things all the time. then about a month later i get the corrected 1099s... but if things look right then i cal and have them fix it, pronto..

[sfloriII]

I contacted my client this morning and they assured me that they would take care of the mistake ASAP. I will be on top of them for that! I'm meeting my tax guy in a week to do last year's taxes, and don't know how to adjust for the mistake; I'll ask him.

I have heard of some clients "overpaying" contractors so that they can have tax advantages. Unbeleivable!

On another note, I'm now having to PROVE to the IRS that I did pay them taxes I DIDN'T owe from two years ago. It was another client's mistake who reported two 1099's from me for the year. He put my name on another contractor's 1099 by mistake. I sent the IRS money for taxes on the other guy's earned income, and now the IRS is requiring me to prove it. JEEZZ. I just sent them the damn check a few months ago.

Funny how the IRS can ruin your life if they THINK you owe them money. When the shoe's on the other foot and they owe you money and know it, you still have to prove it all over again.

Makes me sick. I HATE the damn IRS!