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Your Form 1099 Reports Too Much To IRS, Can You Sue? Source: forbes.com - Feb 12, 2019 Did you receive any IRS Forms 1099 that you think are wrong? Maybe someone paid you $1,000, but reported that they paid you $10,000? The 1099 rules are complex and voluminous, and mistakes happen. But how should you handle it? And what if you think someone intentionally misreported? There’s no easy answer. Some reporting rules (for example, to lawyers and their clients) call for duplicate reporting, one form to both lawyer and client for the entire amount, as though there was twice as much money as there was. That can make it seem as if $1,000 was really $2,000. But more generally, incorrect Forms 1099 are not uncommon. At a minimum, one can read the 1099 regulations broadly, erring on the side of reporting. When in doubt, issue a Form 1099, many say. A few observers may even think of issuing IRS Forms 1099 in a kind of punitive way, to turn the tax tables on someone. Category: General Business |
