b_plante
Level 1
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Hi,

It's really pretty simple, not all the what if this/that. Please if you don't mind. I do the accounting so I know most all the facts. The entity changed it's character from retail sales to a rental of the building where retail sales used to take place.

So a new entity was formed (the why is not material). The old cc machine with the original ein was used for the rents.

The original entity still had other business going on so it filed a return with the correct sales, but, because of this cc machine with it's ein "attached" all the rents are now reported on the old ein.

So totals of 1099's with the old ein add up to 100k higher than what is the true/correct income.

If what you say is true that IRS doesn't "add up" the 1099's and look to see at least that much in sales is reported than there is no problem.

But the IRS is always updating how it processes return. Example the 1099-misc used to be for sales (box 7 IIRC) and now it's the 1099-k. I like to "look ahead" and IMO that's so the IRS can now easily add these up to see all that is on the TOTAL of 1099k is also on the return. Am I overthinking, maybe, but maybe not.

My plan is just to make sure the line 1 sales is at least that much & back the "wrong" sales out.

Gross sales are about 1m and this adj is 100k.

Really appreciate you discussing with me  🙂

If I do this easy amend, nothing changes except maybe I avoid a protracted q&a with IRS over the different sales.

Thoughts?

For CA I looked at the amend data required & IMO I don't need to do anything.

FROM YOU LINK THAT YOU ATTACHED:

This is why I am concerned *** BELOW

The IRS will use the data from the Form 1099-K to develop:

  • Taxpayer education and outreach products and services.
  • New examination and collection approaches.  
0 Cheers