Fraudulent 1099 received

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docmirror

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I was paid some money from a company for renting property. They've posted a 1099 to me with an amount that is almost triple what we actually received. I've heard of companies padding expenses and hiding it somewhere else or using it as a write off for other activities. I read through the IRS instructions on 1099 entry, but there's nothing in there to dispute a 1099 which is wrong. I'm sending a letter to the company, but don't know how to dispute it on my 1040.

Any ideas?
 
Well, I'd hate to be them when they get audited.
 
Contact the business and inform them they need to send you a corrected 1099.

If that doesn't work, call the IRS at 1-800-829-1040. Have the incorrect 1099 in front of you to answer questions.
 
I'm going to send a copy of my income statement for that property to the company and ask them to resubmit, reminding them that I'll be contacting the IRS. If they don't fix it, I'll call the IRS and see what they want to do about it.
 
Could it be a simple mistake?
 
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The company called me a few weeks ago to confirm the tax ID number. I don't give that out to someone who calls so I told them I would call back. I found their phone number from the application and called back and asked for the person I worked with when they rented the place. That person was gone, but they transferred me to the billing dept. I asked them to look up the tax ID number they had and I would confirm it. They did, and it was the right number, so I told them they had the right info for me.

I guess they could have transposed it and sent me a 1099 for another payer. I'll know on Mon afternoon.
 
docmirror said:
The company called me a few weeks ago to confirm the tax ID number. I don't give that out to someone who calls so I told them I would call back. I found their phone number from the application and called back and asked for the person I worked with when they rented the place. That person was gone, but they transferred me to the billing dept. I asked them to look up the tax ID number they had and I would confirm it. They did, and it was the right number, so I told them they had the right info for me.

I guess they could have transposed it and sent me a 1099 for another payer. I'll know on Mon afternoon.
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It is interesting that you say that. My business leases property and none of those folks have any issue handing out their tax id numbers over the years. As far as I know, those numbers (unlike social security numbers) can't get you in a ton of trouble, since business credit applications are usually more documentation heavy and are often tied to a person or persons for smaller businesses.

It was a completely different thing when we rented a room from an individual to satisfy a contract on the cheap - in that case I had my accountant get in touch with the individual and obtain her tax id (which I think was just her SSAN).
 
I just don't give out info to anyone who calls on the phone unless I recognize them by voice or phone number and have some relationship with them. It's my paranoia.
 
docmirror said:
I just don't give out info to anyone who calls on the phone unless I recognize them by voice or phone number and have some relationship with them. It's my paranoia.
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Fair enough.

I was audited by one of my customers (randomly). They had hired an auditing company to periodically review their AP and there was no way I could confirm who they were, so I refused to give them info until I confirmed that they were my customer's vendor.
 
I had a 1099 from a company 5 years after I had left....they wouldn't respond to my requests and the IRS didn't care....I ended up filing an Identity theft form so the IRS would back off...worked.
 
docmirror said:
I was paid some money from a company for renting property. They've posted a 1099 to me with an amount that is almost triple what we actually received. I've heard of companies padding expenses and hiding it somewhere else or using it as a write off for other activities. I read through the IRS instructions on 1099 entry, but there's nothing in there to dispute a 1099 which is wrong. I'm sending a letter to the company, but don't know how to dispute it on my 1040.

Any ideas?
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Call the IRS, collect the reward.
 
Fraud wouldn't be my first assumption. Mistakes happen. Is there something else that leads you to believe they are a fraudulent organization?
 
docmirror said:
I was paid some money from a company for renting property. They've posted a 1099 to me with an amount that is almost triple what we actually received. I've heard of companies padding expenses and hiding it somewhere else or using it as a write off for other activities. I read through the IRS instructions on 1099 entry, but there's nothing in there to dispute a 1099 which is wrong. I'm sending a letter to the company, but don't know how to dispute it on my 1040.

Any ideas?
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Send a certified or return receipt requested letter. Then file your taxes making adjustments on your tax return showing the actual income (deducting the over priced 1099) which will cause you to get a letter from IRS. Then when you provide them proof of your receipts with this guy they will go after him.
 
I'm gonna try to sort it out on Mon. If they don't cooperate I'll contact the IRS in advance of putting through a 1040. My taxes are complicated enough now without having to go through some hoops for a mistake someone else made.
 
Tony_Scarpelli said:
Send a certified or return receipt requested letter. Then file your taxes making adjustments on your tax return showing the actual income (deducting the over priced 1099) which will cause you to get a letter from IRS. Then when you provide them proof of your receipts with this guy they will go after him.
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:yes::yes:...

Come hell or high water.... the IRS will know you tried to rectify the mistake/ fraud.....
 
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