1099-MISC rejected by IRS

Forum|Forum|5 years ago
January 19, 2021
22 replies
30 views

I am a farmer who files a schedule F. I have used Turbo Tax and Quick Employer Forms for many years. I have always send my land lords a 1099-MISC for my land rent payments printed in box 1 "Rents". I just received an e mail back from Quick Employer Forms that the IRS rejected the 1099-MISC and I am now to use 1099-NEC. It further explains that non-employee compensation must be reported on 1099-NEC. This is confusing because 1099-MISC box 1 "Rents" says specifically rents. Any ideas?

Not A Product Question

Best answer by ThomasM125

Form 1099-NEC is a new form whose purpose is to report non-employee compensation. It used to be reported on form 1099-Misc, in box 7. You are correct though, rent income should be reported on form 1099-Misc in box 1.

I would re-file the form as it may have been an error on the part of the IRS resulting from confusion regarding the new form.

ThomasM125Answer

Level 15

I would re-file the form as it may have been an error on the part of the IRS resulting from confusion regarding the new form.

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krauterAuthor

Level 3

Thank you, I will refile the 1099-MISC.

renharp30

Level 2

I had the same exact thing done to me. I also plan to refile my 1099 misc for my rent expense as is. I know it is correct. Hopefully it goes through the second time.

Joe_123

Level 2

My 1099-MISC forms were rejected as well, telling me that non-employee compensation is supposed to be on 1099-NEC. However, my forms only had royalties, which (like rent) still go on 1099-MISC. I guess I'll wait a few days before resubmitting, to see if the IRS gets its act together by then. I'll file manually if they aren't accepted by the end of the month.

renharp30

Level 2

@Joe_123

I just clicked the efile button again. I did not create new forms. I am not certain but in my opinion creating new forms is where you will run into a problem with this. Looking at my employer forms screen I see the 1099misc that was for rent and it has a red ! then the word filed. Right below that it has a green check mark & the word filed. I feel it is clear that it is only one 1099. Of course it always helps to keep all documents (email, the print out of employer forms page ect) in the event there are questions.

eickfarm

Level 2

I had the same problem. I got my rejection email last night. Everything is correct and I have filed my 1099's for rent this way using TurboTax for years. So try again right away without making any changes or should we wait till it is closer to January 31? Has anyone has success with resubmitting/refiling the exact same forms? Please post your outcome either way. Thanks.

wilycoyoty

Level 2

Same problem I had all six 1099 Misc That I filed rejected. I put farm rental in box 1 as have done for several years.

patgreaux

Level 2

Same thing happened to me. As a property manager I should be able to keep using form 1099-MSC but mine got rejected as well. Intuit please contact IRS to let them know about this mess.

eickfarm

Level 2

Update--

I resubmitted my 1099-MISC yesterday with no changes to the original forms. Just this morning I received an accepted email with a confirmation number. I didn't realize there were confirmation numbers, but it is a good reference in case there are questions, so keep those confirming emails.

Thanks to everyone to shared their experiences.

SS1985

Level 2

I also did the same, I resubmitted the original forms with no changes. And I also received an accepted email with confirmation number. I am so relieved everything worked out.

I also thank everyone for sharing their experience and for everyone involved in making the changes necessary to allow Turbo Tax Quick Employer Forms to work properly. It is such a convenient and time saving feature for me.

Thank you, everyone.