Hi. We did some trucking for company “A” that pays out every 45 days. To avoid waiting the 45 day period for payment, we use a factoring company that pays the us next day for a small percentage, then they recoup the payment from company “A”. Company “A” sent a 1099NEC only for the amount paid by check directly to our business. They will not correct their 1099 NEC to show the additional amount they paid to reimburse the factoring company. The factoring company does not issue a 1099 and says all payments should show on company “A’s”1099 NEC. The difference is over 20K. Should we enter the amount from company “A’s” 1099, then the rest in other self employed income? Or, enter the amount that matches our total charges, not what company “A” reported into the 1099 data with a note? Or…something else?
