1099s were efiled...clients mailed them?

[Trnr395]

I have a client that I prepared their 1099 misc forms and efiled them. The copies I gave them they just informed me they mailed in when they picked them up, I am pretty sure they said "copies" but am not 100% certain. What do I do now, the efile has been send and approved.

[kcjenkins]

Nothing you can do at this point.

[Trnr395]

Will it be fine, or is it going to double up their 1099's and show they made twice as much money than they really did?

[Pacun]

Double. IRS will get two entries for the same amount. You should make a correction with 0.

[kcjenkins]

NO, doubling up 1099s SENT BY THEM TO THEIR SUBS OR VENDORS would double expenses, not income. But you are reporting only the single amount, so that will not affect anything. At worst, the IRS might hit one [or more] of the recipients for double income, at which point I am sure the client will here from them. And you give the sub a signed letter stating the correct amount, and that clears it up.

[imjulier]

Seems odd that the client would take the initiative to mail them to the SSA unless you gave them explicit instructions to do so. I suspect they sent them to the recipients and the recipients will know that they received the same form twice.

[Jack from Ohio]

Without a 1096 they will be discarded.

[kcjenkins]

imjulier makes a good point, they may indeed have mailed them to the subs/vendors, since without the SSA address they would not even know where to mail them to the feds.

And Jack is right, unless he included the 1096, SSA would not process them. Of course, he probably had a copy of that too. That is why I always used a red "FILE COPY" stamp on the copies I gave clients.

[taxxcpa]

Before I started e-filing 1099s, I had to tell the clients where to mail them.

[J. Ron]

When did we start sending 1096 and 1099 to SSA? That goes to IRS.