1099-MISC rejected by IRS

[krauter]

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?

[ThomasM125 · Accepted solution]

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.

[krauter]

Thank you,  I will refile the 1099-MISC.   

[renharp30]

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. 

[krauter]

Thomas M125 tax expert,

Now that there are two individuals that this has happened to, i would expect Turbo Tax to approach IRS to make sure this rejection is fixed.  Being a programing problem on either Turbo Tax or IRS.   Please elevate this issue to your supervisor or manager or director.

Been a Turbo Tax user for over twenty years!

[SS1985]

This exact same problem has happened to me yesterday. I looked over the forms and they are correct.

I will refile.

[missionedgefarm]

I had the exact same problem yesterday.  I believe the answer is correct. 1099MISC is the correct form for farm land rent.  How do I refile?  TurboTax does not seem to let me.  Also, my refile would be exactly like the first.  Anyone have success with a refile?

[krauter]

I had to generate new 1099-MISC forms and submitted them.   I have not heard back yet.    I agree that I expect top get the same response; rejected.     

This issues needs to be elevated up the chain of management to get fixed.   As a farmer who does not file quarterly estimated payments I must have these 1099-MISC reported by January 31.    

All who are affected please join in.

It should be an easy fix.

Thanks everyone!

[renharp30]

Just click the efile button toward the top of the page. Do not create new forms.

[renharp30]

I did not have to create new forms with mine..I was able to resubmit the originals. Wonder why that is?

[renharp30]

Seems like several Farmers are having this issue. I rent two offices for one business that is the complete opposite of farming 😊

[Joe_123]

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.

[eickfarm]

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]

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.

[renharp30]

@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.