Overpaid Vendor Last Year, Funds Reimbursed in Following Year: Do we Correct our Reporting?
If we overpaid a vendor in 2010 as the result of an administrative error on our part. In 2011, the error is discovered and they reimburse us the funds. Should the 2010 1099 include the erroneous amount that was paid and cashed by the vendor?
This is what you should do as a result of the error:
We are assuming you have not filed an information return as of yet.
As such, then you the answer is...
Withheld 30% instead of 28% on US Persons: What to do?
One of our subsidiaries withheld 30% from at least two tennis players that are US citizens. Since the Federal amount withheld was already sent to the IRS in April and reported, how is this handled on the Form 1099-Misc? Do I include the gross amount in Box 7 and/or the net amount? Do I report anything in Box 4? Do I need to complete a Form 945???
Another tennis player denounced citizenship from another country but is not a U.S. resident yet. She plays under the U.S. flag and has a green card and a U.S. address, how should this be handled for reporting purposes?
First, If, as you say, the tennis players were US citizens why was 30% withheld and not 28%?
Type 2 Error Identification Question
Somewhere I read and please advise if I understood correctly.
Type 2 error consists of the following. Please confirm. Thanks.
1. no recipient TIN
2. incorrect recipient TIN
3. incorrect recipient name
4. incorrect recipient address.
Here is your answer:
An error Type 2 is one whereby the original return was filed with one or more of the following errors:
(a) No payee TIN (SSN, EIN, ITIN, QI-EIN)
(b) Incorrect payee TIN
(c) Incorrect payee name
(d) Wrong type of return indicator
Help in Completing Form 945X and Dealing with Corrections
We have a correction to federal withholiding for tax year 2009.
Can we use FORM 945X to file a correction?
If so, how do we complete the form?
These circumstances are never easy.
In addition, be careful in such situations and for a multitude of reasons.
Regardless, here is what you should do (and how to do it).
If you have discovered an error on a previously filed Form 945 then you will need to...
Question on Correcting 1099's For a Merged Company
Situation: Correcting 1099's for a merged company. Question - When correcting pre-merger 1099's do we use the original Payer name/ein or do we use the company it was merged into? Example: In 2009 XY company was merged into AA Company so when correcting a 2008 1099 originally filed by XY Company, should we use the originally filed payer information (XY Company) or do we use the after merger company name (AA Company)?
This is what you should do:
Confusion on Corrections
The IRS requires you to make a correction when you have incorrectly reported to them on the original return and created an error that has a taxable implication for the payee. If your situation so warrants a correction, then you need to make it. Just want to make sure I understand this. If the payee name is what we have in the system, but the payee does not correct the payment (until the 1099MISC is received or they are audited by the IRS), but instead "endorses" it over to a different company, am I still"required" to correct my 1099MISC?
Perhaps defining when an error has tax implications for the payee would help.
Mid-year name change to corporation and need to correct 1099?
Situation: Vendor is paid twice a month throughout 2009 as an individual with a SSN on record. The vendor cashes the payments as is. At year end, 1099MISC is sent out with the vendor name and SSN. The vendor now calls saying the 1099MISC is incorrect and supplies new W9 for a corporation. Questions: 1. The payment was made to and cashed by the individual. Should I correct the 1099MISC to the corporation and now not report to the IRS (corp exempt-vendor is not med or legal) even though the payments show as going to the individual? 2. Does the vendor need to provide when the name change and status change occurred? I ask because if the name change does not apply to the whole year, would there be reporting for the time in 2009 that the vendor was not a corp, assuming over $600 was paid to the vendor during that time?
First, you always need to remember your basic rule that...
What do I do when I forget to send a 1099 to someone?
I forgot to send a 1099 to someone. What should I do now? Thanks
Vednor requests correction to 1099 from personal name to corporate name - what to do?
I have several vendors that wish my company to "correct" their 2009 1099MISC from a personal name to a Corporation. The payments were cashed under the personal name, but I have not filed with the IRS yet (extension taken), so could make the change without penalty. But what information should I request to verify that the change is legitimate rather than a way to avoid paying taxes? Is anything required to document why the change was made should I be audited by the IRS? Assuming the change is valid and multiple payments were made throughout the year, do I need to process two separate 1099MISC depending on the timing of the change from old entity to new?
Vedor requesting revision to 1099 - what to do?
A vendor submitted an invoice for payment, he was paid for that invoice. We received a call from this vendor and he states he split the payment with another trainer that helped with the training. He wants us to correct the 2009 1099 to show half of the payment to him and half to the other trainer. Because the check was made out to the one vendor I don't believe we should revise the 1099 and make two. We have no confirmation that the other trainer received the money. What if any obligation do we have to accomodate this vendor? What options does the vendor have if we do not revise the 1099 (meaning how does he report that half of the payment went to another person)? Thank You