query on 1099


R

rob

I refunded a sizable sum to a company this year-- money I had claimed as
income last year. Is it proper to send these folks a 1099-misc ?

Thanks for any opinions (which would not be considered legal or
otherwise professional advice).

Rob
 
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A

Arthur Kamlet

I refunded a sizable sum to a company this year-- money I had claimed as
income last year. Is it proper to send these folks a 1099-misc ?

Thanks for any opinions (which would not be considered legal or
otherwise professional advice).

What is your relationship with this comopany? And last year?

What was the nature of the income you reported as income from them
last year?

Is this a corporation? If so, is it a legal or medical services
corporation?

Is it a U.S. company? Is the office where you sent the payment in
the United States?


For example, if you sold this US corporation a lot of widgets last
year and they paid you for them, but this year discovered the
widgets were defective and demanded you refund their $500,000
payment, you would not need to report this on a 1099 because they
are a corporation.

Had they been a small partnership, you would report this on a
1099-Misc.

===

If you were an employee of this employer and had been paid a
bonus last year if you stayed on the job at least a year, but you
left early and had to repay that amount to them, you would not
report this employee/employer transaction on a 1099.


I can think of many other scenarios but without more information
cannot give much of an answer.
 
R

rob

Sir, thanks for the response. It is a small corp. I had made a sale
and then another outfit took over the purchase and paid me in full. I
then refunded the original payment to the first company. I plan to make
the refund an expense on my next return but I thought that perhaps
sending them a 1099-misc would help document what went on.

Thanks again for your opinion, Rob
 
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A

Arthur Kamlet

Sir, thanks for the response. It is a small corp. I had made a sale
and then another outfit took over the purchase and paid me in full. I
then refunded the original payment to the first company. I plan to make
the refund an expense on my next return but I thought that perhaps
sending them a 1099-misc would help document what went on.
I'd reduce my Sales Receipts by the amount refunded and not worry
about a 1099. And if they are a corporation there is absolutely
no issue fo a 1099 anyway.
 

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