1099 Tax Troubles

ANCHOR LEAD:
YOU KNOW APRIL 15TH IS LOOMING WHEN THE TAX FORMS START PILING UP IN THE MAILBOX. AMONG THEM: 10-99 FORMS. MOST OF US GET THEM. BUT HAVE YOU EVER TAKEN THE TIME TO LOOK BETWEEN LINES TO CHECK THAT EVERYTHING IS CORRECT?
YOU MIGHT BE SURPRISED TO KNOW THAT THEY ARE NOT ALWAYS RIGHT.
IN TODAY'S HEADS UP_____________TELLS US WHY CHECKING YOUR NUMBERS MAY SAVE YOU MONEY AND HEADACHES.

TRACK ONE Length: :08
TAX TIME: THAT MAD SCRAMBLE TO GET IT ALL TOGETHER BEFORE THE DEADLINE.
RECEIPTS, W-2s, AND 10-99s. IT CAN SEEM OVERWHELMING.

SOT
KEY @::10 Richard Montano, Taxpayer
"I get a 1099, generally I get 2 or 3 a year."

TRACK TWO Length: :06
WITH THE HURRY TO PAY TAXES ON TIME, CHECKING THE NUMBERS ON THE FORMS WE RECEIVE ISN'T ALWAYS TOP OF THE LIST...

SOT
KEY @: :20 Ricardo Montano, Taxpayer
"I think most people rely on the accuracy of the employer or the institution that sends it out."

TRACK THREE Length: :12
CLIENT NOTE: please see source info
BUT RESEARCH SHOWS RICARDO MONTANO COULD BE MAKING A BIG MISTAKE.
FIVE TO EIGHT PERCENT OF THE TIME, COMPANIES SEND OUT INACCURATE 1099s.
AND EXPERTS SAY, FILING WITH AN INCORRECT FORM CAN COST YOU.

SOT
KEY @: :39 John Battaglia, Deloitte and Touche Tax, LLP
"They'll end up having to pay interest and penalties based on that income which they should have reported."

TRACK FOUR Length: :08
CHECKING YOUR 1099 IS NOT A VERY TAXING PROCESS - IN FACT, IT'S ACTUALLY VERY SIMPLE. IF YOUR 1099 REPORTS INTEREST EARNINGS....

SOT
KEY @: :50 John Battaglia, Deloitte and Touche Tax, LLP
"You can just go and look at the deposits of the interest income in your account and add them up for the year, they should equal the 1099."

TRACK FIVE Length::03
IF THE 1099 IS FROM SELF-EMPLOYMENT EARNINGS...

SOT
COVERED, NO KEY John Battaglia, Deloitte and Touche Tax, LLP
"They could go to their bank account where they deposited this income, add it up, make sure it's correct."

TRACK SIX Length: :08
BATTAGLIA SAYS CHECKING A FORM'S ACCURACY AND GETTING A CORRECT VERSION IF THERE IS A MISTAKE, CAN HELP AVOID A STICKY SITUATION.

SOT
KEY @: 1:15 John Battaglia, Deloitte and Touche Tax, LLP
"If the IRS questions you in terms of your return, gets audited, or you receive a notice saying that what's reported to them does not equal what is on your tax return...at least you have the corrected 1099 to show them."

TRACK SEVEN Length: :04
RICARDO SAYS HE'S GOING TO CHECK HIS 1099'S FROM NOW ON.

SOT
NO KEY
"I just think, you know it's an eye-opener."

ANCHOR TAG:
IF YOU'VE RECEIVED A 1099 THAT IS INCORRECT, EXPERTS SAY TO CONTACT THE INSTITUTION THAT SENT IT - AND HAVE IT CORRECTED IMMEDIATELY. THIS IS CALLED A CORRECTED 1099. ACTING ON INACCURATE TAX FORMS AS SOON AS YOU CATCH THE MISTAKE WILL HELP YOU FILE CORRECTLY, AND ON DEADLINE.

SOURCE INFORMATION:

John Battaglia
Contact Info.
Deloitte Tax LLP
Two World Financial Center
New York, NY 10281
(212) 436-4014
jbattaglia@deloitte.com

John Battaglia has been a CPS since 1987 and joined Deloitte Tax LLP in 1997.
He specializes in tax consulting for high net worth clients. He is a member
of the American Institute of CPAs and is a contributor to
Deloitte's "Essential Tax and Wealth Planning Guide."

Information for Track Three:
The Securities Industry Association (SIA) was established in 1972 through the merger of the Association of Stock Exchange Firms (1913) and the Investment Banker's Association (1912).
The Securities Industry Association brings together the shared interests of approximately 600 securities firms to accomplish common goals. SIA's primary mission is to build and maintain public trust and confidence in the securities markets. SIA members (including investment banks, broker-dealers, and mutual fund companies) are active in all U.S. and foreign markets and in all phases of corporate and public finance.
Currently, financial institutions must file 1099 information with the IRS by January 31st. Since 1099s report dividends and interest earned from mutual funds and other investments, the relevant financial information is not always available by the January 31st deadline. As a result, the total reported income on the 1099 is not up to date, and therefore, incorrect. The SIA has asked the IRS to extend the deadline in hopes that more time will allow an accurate assessment of the monies earned during the reported tax year.

Travis Larson
Securities Industries Association
VP, Corporate Communications
Tlarson@sia.com
(202) 216-2000