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Letter fro the IRS about unreported income from a certain AMC?

Jack Ashworth

Thread Starter
Freshman Member
Joined
Jan 30, 2004
Professional Status
Certified Residential Appraiser
State
California
Has anyone else gotten a letter from the IRS about underreported income? I did 4 appraisals for a certain AMC in 2018, have the check stubs and 1099 to back it up- total for the work was $1480. Letter I got today from the IRS says that same AMC reported that I got $148,000 from them, and that I got that from them TWICE, so now I owe back taxes on roughly $296,000. This is obviously wrong, and will get sorted over time, but the onus is now on me, of course, to prove this. I have heard that others have had a similar experience with recently receiving a letter from the IRS about 2018 taxes and underreported income from the same AMC. The stories sounded disturbingly similar- a misplaced decimal point (like what turned $1480.00 into $148000). No one else I have heard of had it double reported though. Just asking because I would like to know what others have done. Has any one gotten ahold of the AMC that did this? I have not yet (just got the letter this afternoon and am coming down from the shock now). This is either 1) terminally inept/incompetent accounting, or 2) criminal (if not both), seems to me.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
The AMC reports your income from what they say they paid you on form 1099, copy to IRS and copy to you. I would call the IRS and explain and ask them if they have cancelled checks from the AMC or their copy to support their 1099 report.
 

sputnam

Senior Member
Joined
Apr 24, 2012
Professional Status
Certified General Appraiser
State
North Carolina
Has anyone else gotten a letter from the IRS about underreported income? I did 4 appraisals for a certain AMC in 2018, have the check stubs and 1099 to back it up- total for the work was $1480. Letter I got today from the IRS says that same AMC reported that I got $148,000 from them, and that I got that from them TWICE, so now I owe back taxes on roughly $296,000. This is obviously wrong, and will get sorted over time, but the onus is now on me, of course, to prove this. I have heard that others have had a similar experience with recently receiving a letter from the IRS about 2018 taxes and underreported income from the same AMC. The stories sounded disturbingly similar- a misplaced decimal point (like what turned $1480.00 into $148000). No one else I have heard of had it double reported though. Just asking because I would like to know what others have done. Has any one gotten ahold of the AMC that did this? I have not yet (just got the letter this afternoon and am coming down from the shock now). This is either 1) terminally inept/incompetent accounting, or 2) criminal (if not both), seems to me.
hmm.... $1,480 vs $148,000. Clearly a misplaced decimal. Not sure how you'd need to get it straigtened out but, I'd guess you'd have to get the AMC to correct their report to the IRS.
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
I would not do anything with the IRS over the phone, you should have documented paperwork for every interaction with the IRS in situations like this.
 

Sandra Koutsopoulos

Junior Member
Joined
Jul 13, 2005
Professional Status
Certified Residential Appraiser
State
California
Has anyone else gotten a letter from the IRS about underreported income? I did 4 appraisals for a certain AMC in 2018, have the check stubs and 1099 to back it up- total for the work was $1480. Letter I got today from the IRS says that same AMC reported that I got $148,000 from them, and that I got that from them TWICE, so now I owe back taxes on roughly $296,000. This is obviously wrong, and will get sorted over time, but the onus is now on me, of course, to prove this. I have heard that others have had a similar experience with recently receiving a letter from the IRS about 2018 taxes and underreported income from the same AMC. The stories sounded disturbingly similar- a misplaced decimal point (like what turned $1480.00 into $148000). No one else I have heard of had it double reported though. Just asking because I would like to know what others have done. Has any one gotten ahold of the AMC that did this? I have not yet (just got the letter this afternoon and am coming down from the shock now). This is either 1) terminally inept/incompetent accounting, or 2) criminal (if not both), seems to me.
Oh Brother! I had that happen about 10 yrs ago, and it initiated a nightmare of back and forth with IRS, tax overcharges, penalties and levies! OMG! Horrendous! At height of the crash when I was already in a catatonic state and my business was reduced to a handful of appraisals a month. Having a PTS flashback right now! Long and short is I succeeded in convincing the company that sent me the 1099s with 4 zeros after the decimal point, to send corrected 1099s with only dot.2 zeros and then took that to my CPA and after months (or was it years?...) finally got the matter resolved, but as I recall, IRS did not refund penalties, interest nor levy fees during the process. Freakin' nightmare. The quicker you address it, the fewer problems you'll have. Thank goodness the company that sent the errant 1099 was still in business at the time and had a staff to make the correction.
 

OSU Beavers

Elite Member
Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
Has anyone else gotten a letter from the IRS about underreported income? I did 4 appraisals for a certain AMC in 2018, have the check stubs and 1099 to back it up- total for the work was $1480. Letter I got today from the IRS says that same AMC reported that I got $148,000 from them, and that I got that from them TWICE, so now I owe back taxes on roughly $296,000. This is obviously wrong, and will get sorted over time, but the onus is now on me, of course, to prove this. I have heard that others have had a similar experience with recently receiving a letter from the IRS about 2018 taxes and underreported income from the same AMC. The stories sounded disturbingly similar- a misplaced decimal point (like what turned $1480.00 into $148000). No one else I have heard of had it double reported though. Just asking because I would like to know what others have done. Has any one gotten ahold of the AMC that did this? I have not yet (just got the letter this afternoon and am coming down from the shock now). This is either 1) terminally inept/incompetent accounting, or 2) criminal (if not both), seems to me.
YES SingleSource Property Solutions LLC. Same thing, we got paid for one appraisal in 2018 and the IRS said it was 100 times the amount twice. SingleSource quickly emailed us a 1099 where the tiny decimal point is more visible. For some reason their are two 1099 on the pdf so the IRS must have scanned it in twice while missing the decimal.
 
Last edited:

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Oh Brother! I had that happen about 10 yrs ago, and it initiated a nightmare of back and forth with IRS, tax overcharges, penalties and levies! OMG! Horrendous! At height of the crash when I was already in a catatonic state and my business was reduced to a handful of appraisals a month. Having a PTS flashback right now! Long and short is I succeeded in convincing the company that sent me the 1099s with 4 zeros after the decimal point, to send corrected 1099s with only dot.2 zeros and then took that to my CPA and after months (or was it years?...) finally got the matter resolved, but as I recall, IRS did not refund penalties, interest nor levy fees during the process. Freakin' nightmare. The quicker you address it, the fewer problems you'll have. Thank goodness the company that sent the errant 1099 was still in business at the time and had a staff to make the correction.
I would have sued the AMC for the fees and penalties they caused you. Idiots!
 

Mark K

Senior Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
DON'T PANIC.

There's a phone number on the letter. Call them. Explain. Send them your copy of the 1099. Been there (not AMC related), got it resolved in a month or two (they don't work fast). PITA for sure.
 
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