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Posted

Thanks Lynn, I want to notify my client now instead of waiting for the CP notice to come in down the road.   I have never worked with a client that either pays or receives alimony and just wondering if alimony payments are reported on a 1099, maybe on box 3?

Posted
2 hours ago, ILLMAS said:

Do you foresee a problem if someone receives a box 7 1099 for spousal support and is reported on line 11?

Thanks

MAS

The payer is being an A _ _ H _ LE!!   The payer should be dragged back to court.

  • Like 4
Posted
9 minutes ago, Jack from Ohio said:

The payer is being an A _ _ H _ LE!!   The payer should be dragged back to court.

I am going to ask, but I have a feeling it’s the ex spouse business.

Posted
31 minutes ago, ILLMAS said:

I am going to ask, but I have a feeling it’s the ex spouse business.

Still simply WRONG!  Business money should be moved to the ex spouse's personal account, then paid to the proper agency.  NOT from company funds.

My statement still stands.

  • Like 3
Posted

If the payment is really alimony then client needs to report it as such.  Also report and back out of C to prevent the IRS letter.

  You can spend a lot of time and money trying to get ex to correct it.

  • Like 5
Posted
9 hours ago, Jack from Ohio said:

The payer is being an A _ _ H _ LE!!   The payer should be dragged back to court.

Well, he may just not know.  I mean, we do have the question here from a tax pro.  He may have been given bad advice from his attorney or barber.  For all we know, he paid an accountant to prepare the form.  Of course, you are most likely correct, but this can be handled with a Sch C or a letter in response to a CP2000.  Either would be more efficient and cost effective than going back to court.  And she can smile sweetly and wave at him knowing he looks like a fool and she doesn't.

  • Like 4
Posted

But it would not hurt for her to just politely tell him that he should not report alimony on a 1099, and that if he is concerned that former spouse will have records showing a different amount, he is welcome to send her a letter stating what his records show.  Then he will still do whatever he wants, and so will she.  That is, if they are being polite to one another and can speak without an arbitrator.

  • Like 4
Posted
10 minutes ago, Gail in Virginia said:

But it would not hurt for her to just politely tell him that he should not report alimony on a 1099, and that if he is concerned that former spouse will have records showing a different amount, he is welcome to send her a letter stating what his records show.  Then he will still do whatever he wants, and so will she.  That is, if they are being polite to one another and can speak without an arbitrator.

Exactly.  And if it happens again next year, and the issuer is a business, I might hand her a 3949-A.  Just kidding.  Maybe.

  • Haha 3
Posted
58 minutes ago, ILLMAS said:

A quick update, the ex spouse nor their business was the issuer, the employer was garnishing the ex spouse wages and they didn't how to report it :o

I would think the only way that the employer would report it is as part of their employee's w-2 wages. 

  • Like 3
Posted
1 hour ago, ILLMAS said:

A quick update, the ex spouse nor their business was the issuer, the employer was garnishing the ex spouse wages and they didn't how to report it :o

The employer needs a better payroll person!!  There is a specific place to send the garnishment, and a specific way to treat it in the company books.  Both sets of knowledge seem to be lacking.

  • Like 4
Posted

The garnishment should be a payroll deduction, the same as taxes, tax garnishments, union dues, 401k's etc.

Since it is coming out of the employee's paycheck, there is no expense to the employer, so they are 100% wrong to be issuing any 1099.

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