If your business paid an individual or LLC at least $600 during the year in rent paid, legal settlements, or prize or award winnings, you are required to file a 1099-MISC.
I wrote my letters last night (included a copy of the 1099) to the tracks that sent me 1099-NEC explaining their accounting error, and requesting them to fix this with the IRS and send me the correct 1099-MISC form. I also included the IRS web link to the information about which 1099 form is used for what case. I’m giving them 30 days to contact me about this correction that “WILL” happen.
February 07, 2021, 09:57 AM
Big Steve
The ones I got are 1099-misc
February 07, 2021, 10:05 AM
Mike Rietow
quote:
Originally posted by markemark: I wrote my letters last night (included a copy of the 1099) to the tracks that sent me 1099-NEC explaining their accounting error, and requesting them to fix this with the IRS and send me the correct 1099-MISC form. I also included the IRS web link to the information about which 1099 form is used for what case. I’m giving them 30 days to contact me about this correction that “WILL” happen.
February 07, 2021, 10:23 AM
pentastarrail
I'm sure the accounting folks here know a lot better than I do BUT my account sent out ours as 1099-NEC's because they are business entities.
Maybe the race track has you set up as a "Racing" LLC or DBA or something along those lines instead of just a person.
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February 07, 2021, 10:47 AM
B KING
quote:
Originally posted by Mike Rietow:
quote:
Originally posted by markemark: I wrote my letters last night (included a copy of the 1099) to the tracks that sent me 1099-NEC explaining their accounting error, and requesting them to fix this with the IRS and send me the correct 1099-MISC form. I also included the IRS web link to the information about which 1099 form is used for what case. I’m giving them 30 days to contact me about this correction that “WILL” happen.
LOL! My wife has my 1099-NEC, I'll let her deal with it.
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February 09, 2021, 05:02 PM
Lenny5160
Must be working; I just got a call from Byron Dragway telling me to ignore the 1099-NEC and they will be sending 1099-MISC out once they receive the new forms.
It probably doesn’t matter in my case as I run my racing as a business anyway.
Tony Leonard
February 11, 2021, 03:52 PM
The Bozman
I got one from Ellis Country Real Estate Holdings - I believe this is the Texas Motorplex. Anyone from Texas get one from them, it is also a NEC, I will need to send them a note as well.
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February 11, 2021, 04:26 PM
Big Steve
quote:
Originally posted by The Bozman: I got one from Ellis Country Real Estate Holdings - I believe this is the Texas Motorplex. Anyone from Texas get one from them, it is also a NEC, I will need to send them a note as well.
I got one today from XRP. it is a 1099-NEC
February 11, 2021, 06:43 PM
markemark
For those that receive a 1099-NEC and run their racing as a business, although the incorrect 1099 was issued, you’ll be reporting it on schedule C as required by the IRS. The problem is for those that do not run racing as a business and are now required to report the 1099-NEC amount in box 1 on Schedule C. You’ll have to create a business to use that form. Either way, your “Prize” winnings are entered on the wrong 1099 form and needs to be corrected to the IRS by the responsible accounting firm.
The 1099-NEC is the new form to report nonemployee compensation—that is, pay from independent contractor jobs. Previously, companies reported this income information on Form 1099-MISC Box 7.
All racing or “Prize” winnings have been and “Continue” to be reported on 1099-MISC box 3. That’s the Law.
Google, “where is 1099-NEC line 1 entered in 1040” . It’ll send you to the IRS, TaxAct, H&R Block, TaxSlayer and many others that show “Exactly” what is supposed to be reported in a 1099-MISC and 1099-NEC.
If you have to deal with speaking to an accounting professional that was responsible for this error, I suggest them reading the IRS link that I posted that explains this 1099 information prior to talking to them. That way they know what you know.
Either way, they, the professional accountants, will probably tell you that you are wrong. Don’t have any of it. I didn’t and I won’t. One down and one to go.
