How do I handle a 1099 misc with box 7 NEC that just arrived but I already included the NEC amt as part of my non-1099 income when i filed my 2018 return a week ago?

[Coleen3 · Accepted solution]

It won't do any good to amend, because there are no monetary changes. Since you would have to mail in the form, the paper version has no way to show the change.

It may not be an issue, especially if the numbers match up or what you reported is more than what is on the 1099. If you get an IRS letter, just explain what happened.

[epro829]

Thank you! I appreciate you responding to my question. I now feel much more at ease.

[Steve37]

That 1099-MISC you received is grossly late.

If you filed electronically and the IRS already accepted your return, you are home free.  As long as the income you report equals or exceeds what has already been reported to the IRS it is unlikely that the IRS will question it.

I disagree with Colleen, if you were to paper file you could include a schedule or a statement listing all of your 1099-MISCs. but I would suggest that you wait until you hear from the IRS, if at all.  Make any response short and to the point providing documentation  and include a copy of the letter they send you.

[Critter]

FYI ... to all who file a Sch C ... NONE of the 1099-misc forms you receive are ever sent to the IRS no matter how you file ... the ONLY time one would be mailed in with a mailed return is if the 1099 form has federal or state withholding on it.  

In the program, the section where you list all the 1099 forms is for YOUR records ONLY ... that info is NOT sent with the return or shown on the Sch C at all.   The IRS gets copies from the issuer so they do not need a copy from you as well.   Look on the Sch C ... the only amount that is entered is the total annual income from all sources ... at no point do the sources get listed individually. 

So the bottom line is you NEVER have to wait for any 1099-misc forms to be sent to you ... if you keep good bookkeeping records then just enter your total income amount in the General Income section ( skip the 1099 entry section as it is not really needed ... again that is only for your use... it is never sent to the feds or state).  Thus if you put all your income and expenses on the Sch C when you filed there is no reason to amend the return since it is not incorrect.

[Steve37]

Critter:

Watch that itchy trigger finger Quick Draw McGraw!

“FYI ... to all who file a Sch C ... NONE of the 1099-misc forms you receive are ever sent to the IRS no matter how you file ... the ONLY time one would be mailed in with a mailed return is if the 1099 form has federal or state withholding on it.”

I indicated that you “may” include a list of 1099‑MISCs as part a paper filed return to show the 1099-MISCs received and some software will do this for you (or it can be done manually), but as discussed below, it is unnecessary to file an amended return.

I also indicated that it may be necessary to include copies of the 1099-MISCs if the IRS questions the return, I did NOT indicate to include them with the paper filed return, amended or original.  The IRS NEVER requires a copy of the 1099-MISCs attached to the return, but certain states may require it.  This not only applies to Schedules C and C-EZ, but also to Schedules E and F.

“So the bottom line is you NEVER have to wait for any 1099-misc forms to be sent to you ... if you keep good bookkeeping records then just enter your total income amount in the General Income section ( skip the 1099 entry section as it is not really needed ... again that is only for your use... it is never sent to the feds or state).” 

If 1099-MISCs are sent on time, then you have them at the beginning of the e-filing season.  But I would suggest waiting for the 1099-MISCs to make sure they are accurate. Otherwise, some people don’t keep good accounting records, both 1099-MISC issuers and receivers, but it never hurts to put more detail in a tax return.

“Thus [sic] if you put all your income and expenses on the Sch C when you filed there is no reason to amend the return since it is not incorrect.”

Colleen raised the issue that filing an amended return, which can only be filed on paper at this time, would not show the newly received 1099-MISC which I corrected her by saying that a schedule or statement can be included to show all of the 1099-MISCs, but neither of us suggested that the OP file an amended return, the IRS would simply reject it.

[Steve37]

I meant to say: I also indicated that it may be necessary to include copies of the 1099-MISCs with your response  if the IRS questions the return.

[macuser_22]

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@Steve37 wrote:

That 1099-MISC you received is grossly late.

@Steve37- Don't be misled by the "supposed" posting date of the question.   That is a question that migrated form the old "Answer Exchange" (AXE) to this new "Community".   The old postings have the date of the migration (6-1-2019) and not the actual date of the post which could have been anytime prior to that, when the poster says "I just received the 1099-MISC"  that might have been in February - there is no way to know from the migrated posting just what the time line is since all dates are the date that the post was moved from AXE to this Community.   

You might have responded to a 6 month old post that has been resolved and the facts are no longer relevant.

[Steve37]

I appreciate the information and you may be right that it is already resolved.  But others may come along and read this and be harmed by incorrect and/or incomplete information.