How do I deal with a 1099 misc that my client should not have received?

[caroljo]

My client received a 1099 Misc that should have been given to her mother who has only Social security income.  The Mother has alzheimers and the company was doing some testing on her and her disease.  They paid her $1400 and sent my client the 1099 Misc. How do I handle this?

[sjrcpa]

Have client contact the issuer and ask them to correct it.

[abctax55 · Accepted solution]

I would insist they fix this as it appears to be incorrect.

If that doesn't work, you can run the amount in/out on your client's return with an explanation (that won't be read, but documentation can help if an IRS letter appears).

It sounds like the $ 1400 wouldn't impact Mom's return, but that should be verified.

[BobKamman]

Whose SSN is on the 1099?  If his, why did he give it to them?

[abctax55]

Bob.... 'cuz they asked?  Ignorance of the whole process?  Or maybe we are missing some info?

Good questions

[caroljo]

My client's ss# is on the 1099.  She said she wondered why they were asking her for her number but just didn't argue about it.  

[abctax55]

Given the circumstances and stress, I can understand not questioning. 

[PATAX]

I agree with Anna but good luck trying to get it fixed. My experience is that they throw up every type of Roadblock possible in order not to fix it. Why? Because the fool that made the mistake might end up in an unemployment line, that's why. Now it's time to go to sleep as it's past my bedtime. Good night.😴

[BobKamman]

@caroljo Who drove Mom to the clinic?  Who monitored whether she was taking the medication / following the protocols?  Whose name was on the checks?  When a patient is not able to consent to care, should she qualify for any payment, or should the money instead go to the person who has to do the work to make sure there is no harm from participation?