In January 2013, I received a 1099-MISC dated December 2012. I paid the tax in my 2012 return.
The IRS is upset because I didn’t pay the tax in my 2013 return. They’re giving me three weeks to send them the missing funds.
I can’t find the 1099-MISC in question. Given the short deadline, I’m planning to write a letter explaining the situation. If they’re still upset, I’ll grit my teeth and send the check.
I’ve never had an issue with the IRS before. I’ve considered hiring a professional, but it’s tax season and finding someone might be difficult. Has anyone else been in this situation?
You should be able to work this out on your own. If you have your 2012 tax return you can show you reported this on the prior years return. when did you actually receive the funds?
Thank you. I’ve ordered a copy of my 2012 return from the IRS.
I received the funds in 2013. But because the 1099-MISC was dated in 2012 and I did the work in 2012, I assumed it was counted as part of my 2012 income.
As a tax pro, I’m honestly not sure what’s going on here. If everything you’ve said is true, then there shouldn’t be letters from the IRS demanding payment. Your income matches 2012’s 1099-MISC and your 2013 income matches the lack of a 2013 1099-MISC.
What’s the IRS’s problem, and how could they have been made aware of it?
So, if I’m reading everything right, all I can conclude from your post is that you’re probably not aware of the true issues behind the assessment.
My reading is that the income was received in 2013. The 1099-MISC was probably for tax year 2013, even though it would be unusual to send a 2013 1099-MISC in 2012.
If the income was for 2013 and you included it on your 2012 return, you should pay the tax owed for 2013 and amend your 2012 return to subtract the income. You will then get a refund of the tax incorrectly paid with your 2012 return.
Edit: It’s also possible that the tax year on the 1099-MISC was incorrect (it should have been 2012 but was 2013). In that case the correct course of action would be to have the 1099-MISC corrected by whoever sent it to you. But that would probably be difficult to do now so I would just make things right as I said above.
I’m not sure of the exact tax details of your situation, but my advice is to get together and organize everything you can immediately lay your hands on, then call the IRS and go over the situation. It’s quite possible the phone call will resolve everything; if not, the IRS agent can give you good advice about what the IRS would need to resolve it.
I’ve had a bunch of dealings with the IRS over various small kerfluffles, and they’ve been helpful every time (you’ll wait on hold the first time, but IME only at expected levels for a large corporate semi- help line. i.e. less time than a cable company, more time than a pizza delivery place)
