Author Topic: Error on 1099-MISC  (Read 1565 times)

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fisthardcheese

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Error on 1099-MISC
« on: March 11, 2016 09:02:48 PM »
TransUnion sent me a 1099-Misc and they placed the dollar amount in box 14 - Gross Proceeds Paid to an Attorney.  However, I believe it should have been box 3 - "Other income".

I know they don't usually deal with people like me, but I am definitely not an attorney, nor did I have one work this case.  My problem is that if I report it as they filed it, I will be forced to include a Schedule C with it and report this as a business income.  If I did that, I would have to list the name and type of business I have.  I suppose my 1-time business was "FistHardCheese, Consumer Arbitration Consulting".  Would there be any issue to just go along with this 1099-Misc and make up a business name, or should I go through the hassle of getting a corrected 1099?
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

Flyingifr

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Re: Error on 1099-MISC
« Reply #1 on: March 11, 2016 11:02:19 PM »
1099MISC Box 3 does not generate a Schedule C. Box 7 does. Simply put the amount on Form 1040 Line 21 (Other Income)
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

fisthardcheese

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Re: Error on 1099-MISC
« Reply #2 on: March 11, 2016 11:57:07 PM »
1099MISC Box 3 does not generate a Schedule C. Box 7 does. Simply put the amount on Form 1040 Line 21 (Other Income)

Box 3 is blank.  The only amount they listed is in Box 14.

My tax software is forcing a Schedule C in order to move beyond this point because it is listed in Box 14 as attorney fees.
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

kevinmanheim

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Re: Error on 1099-MISC
« Reply #3 on: March 12, 2016 04:46:30 PM »
You need to contact the TU person who handled your settlement. Tell them to issue a corrected 1099.

TU does the box 14 thing to force you to pay self-employment tax on the settlement amount. Just their way of sticking it to you.

If they don't fix it, I would file a new arb against them.

Flyingifr

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Re: Error on 1099-MISC
« Reply #4 on: March 12, 2016 05:23:19 PM »
Box 3 is blank.  The only amount they listed is in Box 14.

My tax software is forcing a Schedule C in order to move beyond this point because it is listed in Box 14 as attorney fees.

That's the main problem with consumer-use tax software - the program is made so fool-proof that it follows the "Garbage In, Garbage Out" principle - it assumes everything you put in is correct and treats it accordingly. The only work-around is for you to put the amount in Box 3 on the input screen and attach a note to the return stating that you are not a professional litigant and this money represents a settlement of a lawsuit.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

fisthardcheese

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  • They forced arbitration into your contract. Use it
Re: Error on 1099-MISC
« Reply #5 on: March 15, 2016 06:32:34 PM »
Thanks for the info FlyingIFR and Kevin.  I contacted the TU COO who was the person I worked the settlement with last year.  He responded quickly and they are supposed to be issuing a corrected 1099 in the next 2 days. Hopefully that will take care of it.  If not, Kevin's suggestion above will be the likely next step.
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

 

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