1099 Question.

[Bofu2U]

No it's not. Your profit and loss is determined by how much comes in and goes out of your bank accounts. You should already know how much your revenue and expenses were throughout the year, the 1099 is meant for the company sending them, not you. You can save them if you want, but they are rarely accurate so what's the point?



The IRS has no use for a 1099 and will never request one in an audit - ask any accountant and they'll tell you the same thing. Line 1 on your schedule C is for your "gross receipts", it has nothing to do with what other companies reported that they paid you on your 1099.



You have no obligation to match your numbers with another company. If they fucked up their numbers, or are intentionally misleading the IRS, that's their problem. Just make sure your numbers are accurate, and that you aren't misleading the IRS. I've had 1099's be off by over $50k before and my accountant just laughed and said he's seen worse, and that's why they never look at them. My books are all that matters.

Informational Gunman ftw.

 

[efeezy]

You have no obligation to match your numbers with another company. If they fucked up their numbers, or are intentionally misleading the IRS, that's their problem. Just make sure your numbers are accurate, and that you aren't misleading the IRS. I've had 1099's be off by over $50k before and my accountant just laughed and said he's seen worse, and that's why they never look at them. My books are all that matters.

Are you keeping your own books? If so what's a good, not overly bloated with features, program for just keeping track of income, expenses, credit card charges, donations, etc. I suppose I could just use Excel, but a simple version of Quickbooks would be nice. What are you guys using?

 

[jeffrey]

Are you keeping your own books? If so what's a good, not overly bloated with features, program for just keeping track of income, expenses, credit card charges, donations, etc. I suppose I could just use Excel, but a simple version of Quickbooks would be nice. What are you guys using?

Quickbooks really is pretty simple to use. It took me a few days to get accustomed to the system but it has everything you would need.

 

[Rexibit]

Are you keeping your own books? If so what's a good, not overly bloated with features, program for just keeping track of income, expenses, credit card charges, donations, etc. I suppose I could just use Excel, but a simple version of Quickbooks would be nice. What are you guys using?

GNUcash is free. If you're use to QuickBooks, it'll take a little getting use too as some things are labeled a little differently, but overall it's a pretty handy application.

Oh, you might also look into using Mint.com for a glance at your financials. I started using that for my iPhone recently after changing banks since I have several accounts to watch now.

 

[dmnEPC]

No it's not. Your profit and loss is determined by how much comes in and goes out of your bank accounts. You should already know how much your revenue and expenses were throughout the year, the 1099 is meant for the company sending them, not you. You can save them if you want, but they are rarely accurate so what's the point?



The IRS has no use for a 1099 and will never request one in an audit - ask any accountant and they'll tell you the same thing. Line 1 on your schedule C is for your "gross receipts", it has nothing to do with what other companies reported that they paid you on your 1099.



You have no obligation to match your numbers with another company. If they fucked up their numbers, or are intentionally misleading the IRS, that's their problem. Just make sure your numbers are accurate, and that you aren't misleading the IRS. I've had 1099's be off by over $50k before and my accountant just laughed and said he's seen worse, and that's why they never look at them. My books are all that matters.

The point of a 1099 is twofold, its used as a way for a company to deduct what they paid their contractors, and per the IRS to determine Self Employment Tax for the recipient.

Your accountant may have laughed it because of the huge discrepancy, which he could easily substantiate should you be audited. You obviously keep great books and have hired a good accountant which keeps you relatively safe. If you didn't have his signature going on your return would you feel the same?

If you have an accountant telling you to disregard it then by all means disregard them, he is obligated to defend your return in the event of an audit. If this isn't the case why not just play it safe and get it corrected?

 

[eliquid]

it is suppose to be twofold, but the fact of the matter is most likely you will have more income then the 1 1099 coming in, so in all essence it only really matters as a expense record for the sender.

The only time this becomes a problem is if the IRS gets $XXXX worth of 1099's for a tax ID number and the same tax ID number only claims gross rev less then that total.

 

[dmnEPC]

The only time this becomes a problem is if the IRS gets $XXXX worth of 1099's for a tax ID number and the same tax ID number only claims gross rev less then that total.

This is exactly my point. If its a couple thousand here and there I agree who cares. You probably have income from some sources where you didnt even get a 1099, but when you start to add them all up and the reported amount is more than your showing on your gross that's when the possibility of questions being asked starts to go up.