Well, you said it in a lot less words than I did.
Dont forget, there is "accrual" based accounting and "cash" based accounting. That can come into play as well, but not much for agents.
Transamerica Incorrect 1099???
- Thread starter Turbo3.8
- Start date
Well, you said it in a lot less words than I did.
Dont forget, there is "accrual" based accounting and "cash" based accounting. That can come into play as well, but not much for agents.I know how it works if you stay with the company over a 2 yr period. Lets say a guy started in 2014 and had 5 co's and made $60k in deposits but only made $30k as earned and the co's all 1099 him for the advancement. He must report $60k for 2014. If you report $30k which was the amount actually earned then the irs sends you a letter that what you reported doesn't match what there records say. Of course the next yr if you had chargebacks and wrote nothing new hows does that work? Will the company send you a negative 1099?I've never had that happen so I don't know. Also were do chargebacks go on sch c? Is it line 2 returns and allowances.
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I don't know the answer to your question.
I did want to share my audit last year...
We got audited because our tax person put our lead cost on the contract labor line. So the audit was for milage and contract labor. We were told to bring in our milage records and if we didn't keep a daily record to recreate our travel. We were also to bring our contracted labor proof of payment and any contracts we had (not insurance,more like lawn care or service type stuff)
We explained that we don't have an actual contract with our mail house. They then realized it was for leads. They said our lead s should have been listed under misc. They didn't even ask to see our milage.
And they found an error and we actually got a refund. Our IRS rep was really nice and it was all just a misunderstanding of how to lists lead costs.
I never want to go through the stress of those few weeks again
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Last day of every month I pull up my deposits for that month from my on line statement. Total them up and record it.
Could wait till the end of the year but it's more tedious that way.
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My accountant is very good and she accounts for the difference with an explanation. The income is usually less than the 1099"s so she puts down that it's chargebacks since that's what it is. Also differences in accounting.
I've filed this way with a home office deduction for 22 years now. Haven't been audited yet. Hopefully that continues.
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Some companies do and some don't...
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Where would one put an "explanation" on the tax forms?
Just incorporate or form an LLC, have your deposits EFT to your business account. If you are being paid into a corporate account the carriers legally dont even have to 1099 you, and if they do just keep them, what is most important is showing deposits vs. expenses (deductions) for the year, period. If I dont get paid for it then I dont pay tax on it.
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I had a to pay a carrier about 1200.00 in 2014 for charge back from a case I wrote and was paid for in 2013.Is the carrier suppose to give me a amended 1099 for 2013 since they got back the commission they paid me 2013 but the 2013 1099 doesn't show this.
My CPA didn't know what to do with this.
