Discussion Archives:Schedule C 1099 Questions on '11 Returns

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Discussion Forum Index --> Basic Tax Questions --> Schedule C 1099 Questions on '11 Returns


Discussion Forum Index --> Tax Questions --> Schedule C 1099 Questions on '11 Returns

DgR (talk|edits) said:

5 February 2012
The two new 1099 questions on business returns including individual Schedule C's are giving preparers fits according to the 2/3/12 Kiplinger Tax Letter. I agree. Is this a "catch 22" or what? The first question is whether any payments were made requiring 1099's, the next is did you or will you file all required Forms 1099. This wasn't covered in two 2 day tax seminars I went to.

Ckenefick (talk|edits) said:

5 February 2012
It's been covered here on TA extensively since these forms first came out. Not sure why it's a Catch 22 with respect to a Schedule C filer. Either you're required to file them or you're not.

Death&Taxes (talk|edits) said:

5 February 2012
Discussion: 1120S Schedule B line 10a (1099s)

Lukepccpa (talk|edits) said:

6 February 2012
I brought this subject up back in December (Discussion:CMA procedure for new 1099 questions on Sch C/F?) after I had installed my software and was going through the forms to get familiar with it.

I sent out a letter with the client organizers that explained the 1099 filing requirements, the penalties, the new questions on the returns, and then has the client answer the questions, sign the letter, and return it to me. The letter also asks if they will prepare the 1099's or want us to prepare the 1099's (if required). We are going to keep the letter in our file to prove cover our butts if any IRS issues arise in the future.

Our phones have been blowing up since we sent out the letter, and we are doing more 1099's for more people than we ever have, as well as passing out more free blank 1099's, so the letter must be working.

Spell Czech (talk|edits) said:

6 February 2012
Realizing they don't have the resources to get better 1099 compliance on their own, the government makes us their [begrudging] tools in getting taxpayers to send out more 1099s. "Sign this or else..."

Does anybody remember Woody Paris? He said "Cooperation and compliance are not the same thing." Short-lived 1970s TV show. Darth Vader played Woody...

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