Discussion:A big Big BIg BIG BIGGGGG Bonus!!!
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| Revision as of 19:25, 6 January 2009 Donniecastleman (Talk | contribs) (I have a CP-2501) ← Previous diff |
Current revision TTMM (Talk | contribs) (I would physical) |
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| {{ForumReplyPost|UserID=Donniecastleman|Date=6 January 2009|Text=I have a CP-2501 for 2007.}} | {{ForumReplyPost|UserID=Donniecastleman|Date=6 January 2009|Text=I have a CP-2501 for 2007.}} | ||
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| + | {{ForumReplyPost|UserID=TTMM|Date=6 January 2009|Text=I would physically look at the 1099MISC. I have had several problems with 2007 1099s. The IRS has duplicated them on taxpayer's records and then sent the CP-2501 wanting more money when in fact it is the IRS records that are messed up (shocker). | ||
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Current revision
Discussion Forum Index --> Advanced Tax Questions --> A big Big BIg BIG BIGGGGG Bonus!!!
Discussion Forum Index --> Tax Questions --> A big Big BIg BIG BIGGGGG Bonus!!!
Donniecastleman (talk|edits) said: | 6 January 2009 |
| A 1099-misc was issued to a client of mine on June 19 2008 for a giant bonus for good work done for the company, practically doubling their income. The IRS is treating this income as missing on their 2007 return. Should I try and get the income reclassified to 2008 income depending on when client had access to the funds, and then should this go to Schedule C with some additional expenses or can I get away with putting it on Line 21 and adding expenses (we REALLY played ultra conservative with expenses, scout's honor) to the 2106? We're not talking about a small bonus here, we're talking 6 figures. | |
RoyDaleOne (talk|edits) said: | 6 January 2009 |
| When did the client receive, or have access to the bonus? | |
| 6 January 2009 | |
| Is your client an employee of the company? If so, the bonus should have been W-2 wages.
Perhaps the company is trying to use this method to get a tax deduction in 2007, presumably a high income year, by paying a bonus in 2008 and filing a late 1099 to help support the deduction. | |
| 6 January 2009 | |
| May have to use 8919 if the client was an employee and the company refuses to put it on the W2. Boy will they get mad! In either case, the IRS will want the SS/Med tax paid. | |
Donniecastleman (talk|edits) said: | 6 January 2009 |
| eesh, would be a bad sticking point as the client has been with the company since the 70's. hoo boy. | |
Death&Taxes (talk|edits) said: | 6 January 2009 |
| Are you saying you have a CP-2000 for 2007, Donnie?
Your client might be able to negotiate the payment of half the medicare cost, making it taxable when reimbursed in 2009. But as a professional, the 8919 would be your written suggestion. | |
Donniecastleman (talk|edits) said: | 6 January 2009 |
| I have a CP-2501 for 2007. | |
| 6 January 2009 | |
| I would physically look at the 1099MISC. I have had several problems with 2007 1099s. The IRS has duplicated them on taxpayer's records and then sent the CP-2501 wanting more money when in fact it is the IRS records that are messed up (shocker). | |
