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Do verify the 1099s you receive????

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Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I received quite a few 1099s this year. Most of the time they just get put in the tax folder to be filed away with the corporate return. For some unknown reason I started reading them. Seems one of my builder clients made a small error on the 1099. Instead of about $1600 in appraisal fees they reported $15,635. This could cause problems with the IRS. Just a word of caution.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
8)
Oh YEAH, I take at LEAST a quick looksee. I know who my major clients are and I know about how much they paid me and if SOME one sends me something that out of whack I'd surely take a second look.

For several years I actually added it up... now I don't.

As an aside how many of you notice that your minor clients (one timers) send you 1099's, ditto ALL the big guys, but the ones in between don't :? .
 

TEL2002

Elite Member
Joined
Jan 16, 2002
Professional Status
Retired Appraiser
State
Louisiana
If you pay someone or some entity more than $600 you are supposed to send a 1099.

I have all jobs logged into a MSWorks database. DB includes client, property address, appraiser, fee, date completed, paid y or n.

I can sort info on any given data field, and print out a total. Makes it real simple to get total $ per client....Takes about 2 minutes to verify.

Have not caught any mistakes yet...but have not done it yet for 2002.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Thanks Mike, good point :!:
I'll need to spend a little time looking through Quickbooks before sending the stuff onto the CPA.
 
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Montana
Mike:

The most critical item to check is the tax ID# Two years ago I got issued one with my SS number and not Fed tax ID. Cost me over $700. The company would not issue a new one due to an incredible incompetent accounting department. My accountant said it was easier to pay than to fight. I paid and got new accountant.
 

KD247

Senior Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Speaking of 1099's...

Anyone here have a tax accounting background? If so, what are the general rules for when a 1099 is required (or not)? I haven't gotten around to asking my accountant, but someone here probably has the facts.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Doug Smith ..

You could've issued yourself a 1099 .. 'income received as a nominee' .. and transferred the amount from your SSAN to your FIN. Go back, file a 1040X and correct it ..

1099's are only due for funds paid to an unincorporated individual for personal services greater than $600 in one year .. NOT for purchases of materials, etc. ...
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Doug:
I'd have corected the 1099, and moved on!

Glad you fired the guy or gal, with representation like that who needs 'em :evil:
 

KD247

Senior Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Bill said: "1099's are only due for funds paid to an unincorporated individual for personal services greater than $600 in one year .. NOT for purchases of materials, etc. ..."

This is what confuses me. Are appraisals "officially" defined somewhere as a service and not a product?

Just curious, not a terribly important concern.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Income could be from rent, royalties, or what you normally see MISC

I just sent my transmittals today. I wait after sending out the 1099 to my subs to see if they catch a mistake. If not, send transmittal (1096)

Incorporated, I no longer have to worry about reconciling my 1099s. No body sends me one. I assume that is what happened to Doug. Sent a 1099 to his ssn.
 
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