topic 1099-MISC rejected by IRS in After you file

1099-MISC rejected by IRS

krauter — Tue, 19 Jan 2021 03:50:30 GMT

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?

Re: 1099-MISC rejected by IRS

ThomasM125 — Tue, 19 Jan 2021 04:30:45 GMT

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.

Re: 1099-MISC rejected by IRS

krauter — Tue, 19 Jan 2021 13:01:54 GMT

Thank you, I will refile the 1099-MISC.

Re: 1099-MISC rejected by IRS

renharp30 — Tue, 19 Jan 2021 15:59:36 GMT

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.

Re: 1099-MISC rejected by IRS

krauter — Tue, 19 Jan 2021 18:54:07 GMT

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!

Re: 1099-MISC rejected by IRS

SS1985 — Tue, 19 Jan 2021 17:02:02 GMT

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

I will refile.

Re: 1099-MISC rejected by IRS

missionedgefarm — Tue, 19 Jan 2021 17:40:21 GMT

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?

Re: 1099-MISC rejected by IRS

krauter — Tue, 19 Jan 2021 17:50:21 GMT

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!

Re: 1099-MISC rejected by IRS

renharp30 — Tue, 19 Jan 2021 17:50:40 GMT

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

Re: 1099-MISC rejected by IRS

renharp30 — Tue, 19 Jan 2021 17:51:57 GMT

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

Re: 1099-MISC rejected by IRS

renharp30 — Tue, 19 Jan 2021 17:57:01 GMT

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

Re: 1099-MISC rejected by IRS

Joe_123 — Tue, 19 Jan 2021 18:00:32 GMT

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.

Re: 1099-MISC rejected by IRS

eickfarm — Tue, 19 Jan 2021 18:47:54 GMT

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.

Re: 1099-MISC rejected by IRS

wilycoyoty — Tue, 19 Jan 2021 19:08:20 GMT

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.

Re: 1099-MISC rejected by IRS

renharp30 — Tue, 19 Jan 2021 19:12:17 GMT

@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.

Re: 1099-MISC rejected by IRS

patgreaux — Wed, 20 Jan 2021 19:09:41 GMT

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.

Re: 1099-MISC rejected by IRS

krauter — Thu, 21 Jan 2021 16:40:44 GMT

I re-filed with new 1099-MISC forms and IRS accepted them in two days!

Re: 1099-MISC rejected by IRS

eickfarm — Thu, 21 Jan 2021 17:03:19 GMT

So glad to hear it. I resubmitted my group yesterday without making any changes. Your news makes me hopeful.

Re: 1099-MISC rejected by IRS

eickfarm — Fri, 22 Jan 2021 13:26:52 GMT

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.

Re: 1099-MISC rejected by IRS

SS1985 — Fri, 22 Jan 2021 15:08:51 GMT

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.