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Discussion Forum Index --> Advanced Tax Questions --> "commission" income
Discussion Forum Index --> Tax Questions --> "commission" income
HTFS (talk|edits) said:
| January 29, 2009
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| I have a client who with a group of friends has received some "commission" income. The client received the lump payment and then distributed the shares to the others. They are all 1040 only tax payers, no home business or other ways to currently process this. The client expects to receive a 1099 with the entire sum listed as other income. What is the best legal way to report the income and the distributions. The second layer to this is that he received the lump sum on Dec. 30th and didn't get the wires for the distribution made until Jan. 6th so how do they go about reporting for themselves and to the others in the group. Some direction would greatly appreciated.
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Taxea (talk|edits) said:
| 29 January 2009
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| Have the client contact the issuer of the 1099 and correct it by zeroing it out. Then the issuer needs to issue a 1099 for 2009 at the end of this year. Why is the issuer sending all the money to your client rather than to each of the investors? taxea
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Notax (talk|edits) said:
| 29 January 2009
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| From the issuer's perspective they issued the 1099 to the correct party. Your client received the entire payment. I think if you have the client contact the issuer, they will tell them to get lost. I would report the entire amount and nominee the other friend's portion out (show with a schedule detailing names, social security numbers and amounts).
Good luck with the second layer.
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Death&Taxes (talk|edits) said:
| 29 January 2009
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| If the 'friends' knew of the transaction, there should be no need for nastiness. Agree with Notax. If he received the distribution on the 30th, the payer disbursed it at least one day earlier. The payer can stand on the record that it was a 2008 transaction.
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