Ok, you know how no one ever uses box 3 on 1099-Misc?

[joanmcq]

No matter what kind of services, box 7 seems to be the box of choice for issuers of 1099s regardless of what it's actually for. You know how we struggle with the reporting when box 7 is checked and ain't no way it's for a business. Trustee or executor fees come to mind right now.

So I have an attorney, and there's a special box for payments to attorneys. Box 14. So does the issuer fill out box 14? No. Box 7? No.

Only one I've seen in years with box 3 filled out.

So now will the IRS be looking for the income on line 21 instead of the Sch C? (this is a rhetorical question, no one need answer)

[Catherine]

I've seen Box 3 (as well as Box 6 and Box 7) used for payments by health insurance companies to therapists of various kinds. 6 & 7 seem to be the most common but there are a few who gravitate towards 3. I put the amounts on Sch C as that is where they belong.

If it was a trustee fee, and the person was not in the business of being a trustee, then I'd look at Line 21.

So far as I know, the IRS wants the $$ claimed somewhere - facts and circumstances determine where.

[Lion EA]

I have a self-employed psychiatrist client. His 1099s come with every possible box used. Dr. is in his title, so it would seem the preparers, especially Medicare, would know what box to use!

[Elrod]

That is simply a sign that they are not reading, or haven't acquired the instructions.

I have had numerous people stop by my office for blank 1099s/1096, and when I ask if they want instructions....Oh! no...we did these before.

IRS required reporting of income has become a turkey shoot.