How do i handle two 1099 misc from the same person? Will the IRS expect me to report both, or just the larger of the two (which actually represents the total income)

[NK2]

Detail:  I got 2 1099 Misc from the same person.  One is [nearly] correct (I can live with the difference), but the other is about 25% of what they paid me.  Can I just report the larger of the two, or will the IRS expect me to report both and add them up???

[Carl]

If the payer's EIN or SSN is the same on both, only use the one that has the "corrected" box checked.

[NK2]

Unfortunately neither of them had “corrected” checked.   What do I do?  Does the IRS add them both up as income, or only one of the two??

[Carl]

They'll be added together. If you think that's wrong, then contact the issuer. They will need to re-issue the incorrect one with the VOID box checked so the incorrect one (if there is "in fact" an incorrect one) get's voided with the IRS.

[NK2]

Thanks but I don’t see a VOID box on the 1099 Misc??
Which box would that be?
Or do they just issue it as $0 with the “corrected” box checked?

[Carl]

That's another option of $0 with the corrected box checked. As for the VOID box, I do see that on the 2019 form at <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1099msc.pdf">https://www.irs.gov/pub/irs-pdf/f1099msc.pdf</a>.
Overall, this seems like an issue if the payer's EIN and recipient's SSN are identical on both forms. If so and a corrected 1099-MISC is issued with $0 in all the boxes, I don't know how the IRS will know which 1099-MISC is cancelled. Hey @TaxGuyBill how's that dealt with?

[NK2]

Yeah great point.  This very "confused" payer used 3 accountants in 2018.  Two of them issued 1099's and clearly didn't coordinate.  The payer's EIN and recipient's SSN are identical on both forms.  We contacted the payer and her initial reaction is she's refusing to fix the issue b/c she doesn't want to redo her taxes.  I'm also realizing that any reduction on the 1099 means more income (and thus more taxes) for her.
Ugh !!!

[TaxGuyBill]

Correcting 1099s does not mean she needs to redo her taxes, it just means fixing the 1099.

If she reported the correct amount she paid you on her tax return, she would not need to change her tax return.  If she reported an incorrect amount that she paid you on her tax return, she needs to amend her tax return regardless of any 1099s.

[TaxGuyBill]

I wouldn't bother getting them to change the 1099-MISC.

Don't even bother to enter the 1099-MISCs into the program, just enter how much income you received.  If the combined total of all 1099-MISCs is larger than what you actually received, enter the combined total of the 1099-MISCs.  Then as ann "other deduction" (on Schedule C, assuming this is for your business), report the difference as a deduction, and call it "Incorrect 1099-MISC", or "Timing Difference".

[NK2]

Where on the Schedule C is the "Other Deduction" ?  Sorry not finding it on the form

[TaxGuyBill]

It is actually "Other Expenses".  On the form itself, it is on Line 48 (and the space above Line 48) at the bottom of page 2 of Schedule C.

[NK2]

Ok found it.  How critical is it, in your opinion, that I document the difference in a letter and then file a paper return?  (I was really hoping to e-file...)

[TaxGuyBill]

The IRS won't read a letter with your tax return.  Just e-file.  You are filing the correct amount on your tax return, so there is no need to explain.