Discussion:Doctor with over twenty 1099-Misc
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| 19 February 2009 | |
| I'm preparing a doctor's return...he has over twenty 1099-misc in his file. Do I have to record every single one (with the payer name, address, etc) -- or is it okay to just add them up and one-line enter them as "gross receipts" on line 1 of sch-C? It was done that way (one liner) last year, but I want to make sure that is acceptable.
Thanks! -Chris | |
| 19 February 2009 | |
| you think those are his gross receipts? Where is his accounting? Every patient issues a 1099? | |
Seaside CPA (talk|edits) said: | 19 February 2009 |
| His gross income should be shown on one line. Make sure the total 1099's are the same or less than what you show his gross to be. | |
Seaside CPA (talk|edits) said: | 19 February 2009 |
| Hopefully he has some kind of accounting system in place so that you don't have to take his income off of his 1099's. | |
| 19 February 2009 | |
| 1099's are not reported on a tax return at all. Gross income is reported and the IRS uses the 1099's to determine if all income is reported. Do not confuse tax software data entry conventions that may ask for detail from a 1099 with a requirement to report that information on the return. | |
| 19 February 2009 | |
| Exclusively paid from insurance companies, HMOs, etc. Every penny of income (other than unearned and patient co-pay) is coming in via 1099-Misc.
Back to my carpal-tunnel question: does the IRS want to see the input of each provider in the return as a separately recorded 1099-Misc or is it ok to sum them and input the total as (part of his) gross receipts on line 1 of sch-C? -Chris | |
| 19 February 2009 | |
| Thanks Irsfixer -- that was what I was wondering. It's hard for me to tell what gets transmitted via e-file -- I wanted to make sure the IRS wasn't looking to match 1099's line-for-line.
-Chris | |
Chris2lane (talk|edits) said: | February 19, 2009 |
| ChrisV2, Irsfixer is correct. I think you may be confused that 1099s have to be "attached" to his return, like W2s. They do not. They are merely informational forms, no attachment is necessary. If your doctor tells you that his gross revenues are what the sum of the 1099s are, then he's not being forthright with you. | |
| 19 February 2009 | |
| Sure, his 'accounting data' is a large envelope full of documents and a handwritten list of expenses, some of which looks to be in Hindi.
I didn't mean to cause confusion by indicating that 1099=gross receipts; there's other stuff on the handwritten list. Either that or I'm supposed to deliver food to him. -Chris | |
| 19 February 2009 | |
| he doesn't have someone who does his billing and keep up with the expenses? | |
| 19 February 2009 | |
| His wife. "does" and "keep up" are very subjective terms. | |
| 19 February 2009 | |
| There are still those kind of people out there. Some of the richest are some of the cheapest. | |
| 19 February 2009 | |
| Absolutely. The income to charitable contribution ratio is about 1:0.0025
Ah well, the invoice on this one is going to be worth it :-) -Chris | |
| 19 February 2009 | |
| I have had problems with 1099 match programs. What I do is in a statement to the return list all
1099's and there FEIN's. That total should be less than the amount that is reported as gross income. Check the deposits to his/her business account and determine their correctness. In addition, billing programs will give you a collection and billing report by payor. Match these up to the 1099's. Obviously, deposit amounts and 1099 amounts could be different. Good Luck | |
