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hallz10
New Member

Received 1099-MISC for IT Consulting - box 7 was entered

I offer IT consulting services and received a 1099-MISC from a customer of mine. Unsure why MISC instead of 1099-NEC, but regardless, on the MISC, box 7 (payer made direct sales totaling $5000 or more of consumer products to recipient for resale) was indicated with a "D"

 

To me, this sounds like I received products for resell. I do not buy or sell products for this business. Is this an error in the form I was provided? My customer says the form is correct and they cannot change that box. Do I need to push back on this, as I don't deal in physical goods?

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1 Reply
Cynthiad66
Expert Alumni

Received 1099-MISC for IT Consulting - box 7 was entered

Yes, this is an error on their part.  No pushback is needed.  You can handle this by making sure that the income earned from the services performed is included in the total business income.  Keep the document with your records to show how your total income was computed.  If the IRS ever has a question you can provide documentation to show that it is included on the return.  IRS's main concern is that ALL income is reported.

 

Again, just make sure to include it in income.

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