The 1099 was too high! « Notary Blog – Signing Tips, Marketing Tips, General Notary Advice – 123notary.com
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January 6, 2013

The 1099 was too high!

Filed under: General Articles — Tags: , — admin @ 10:14 am

The 1099 was too high!

A notary public who had worked for a signing company complained on one of the forums that their 1099 from a particular signing company was too high. The notary public contacted the bookkeeper at the signing company, but got no response. If it were me, I would keep after them. This is a very serious issue. The IRS is very slow and stubborn to deal with. It is like pulling teeth. And then will make you pay taxes on the income from all 1099′s, otherwise you would be in big trouble.

What can you do?
But, how can you resolve a situation like this when nobody is cooperating?

You could send a letter to the IRS stating that you tried to get the signing company in question to comply, but they wouldn’t forward bookkeeping records for your case, and that there is nothing that you could do.

Maybe it is not so serious
Another interesting fact to remember, is that companies are not required to send you a 1099 unless you made more than $600 in income from your work with them. Most companies will not 1099 you even if you made above $600 in my experience. Some companies are anal and 1099 everyone, while others only 1099 the big guys. Some are completely neglegent and don’t 1099 anyone which spells trouble for them, but not you.

If the 1099 you got is only a few hundred high, maybe it is not a big deal. The IRS adds up all of your 1099′s from all of the vendors that use you. If the grand total is higher than what you claim in your Schedule C, then you are in big trouble. But, if only three companies 1099 you and most others never bother, then the 1099 amounts only to a piece of paper that you save in your file that will never really matter — because three 1099′s will not add up to anywhere near your total notary public income if you worked for 10 or more companies, right?

I remember when I was a mobile notary public. I might have gotten half a dozen 1099′s amounting to less than $10,000 when my total notary public income was around $50,000 or so. It was never a problem for me.

I wouldn’t bother unless…
I would not bother with an incorrect 1099 UNLESS you feel it will effect your grand total of all the 1099′s everyone sent you. Also, if the 1099 is deliberately and fraudulently a few thousand too high, that looks like fraud, and not an innocent or careless bookkeeping mistake. I would report fraud immediately. Reporting a mistake is up to you, but if it is small, then maybe it is not worth it. Also — it might be YOU who made the mistake… Do you keep accurate books, or do you make sloppy mistakes?

You might also like:

Shoot first and ask questions later: a story about the IRS
http://blog.123notary.com/?p=2987

The 1099 mystery
http://blog.123notary.com/?p=3043

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