Any Accountants Out There?

[SneakyStuff]

Hey Everyone,

I received a 1099-Misc form in the mail today from the following company: RREEF Funds LLC

http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=107573789

It states that I had received a nonemployee compensation of $600 (which I have absolutely no record of) and that I would have to pay taxes on this as it has already been reported to the IRS.

They have my name, social, and address on this form which puzzles me even more. There is no phone number and no email contact information on this form and it SCREAMS sketchy when I think about the situation.

How would you go about handling this?

Thank You!!!

 

[John Connor]

Hmmm.... It does sound sketchy. That link has RREEF Funds LLC phone number. If it was me, I'd call them and see about how to verify that 1099.

Did you have any involvement in property that you can remember?

 

[MomentsofSanity]

Hey Everyone,

I received a 1099-Misc form in the mail today from the following company: RREEF Funds LLC

http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=107573789

It states that I had received a nonemployee compensation of $600 (which I have absolutely no record of) and that I would have to pay taxes on this as it has already been reported to the IRS.

They have my name, social, and address on this form which puzzles me even more. There is no phone number and no email contact information on this form and it SCREAMS sketchy when I think about the situation.

How would you go about handling this?

Thank You!!!

Do you have any REITS or something similar you are invested in? RREEF is a pretty well known company.

 

[SneakyStuff]

Do you have any REITS or something similar you are invested in? RREEF is a pretty well known company.

I have my bank account/savings, a company 401k managed by Wells Fargo, and my own portfolio managed through TD Ameritrade that I hold stocks in (Things like PG, VISA, ATVI, nothing related to property in any way). That's why this whole thing struck me as incredibly odd, it was a dead even amount of $600 that I can't trace to anything.

 

[louis redfoot]

I have my bank account/savings, a company 401k managed by Wells Fargo, and my own portfolio managed through TD Ameritrade that I hold stocks in (Things like PG, VISA, ATVI, nothing related to property in any way). That's why this whole thing struck me as incredibly odd, it was a dead even amount of $600 that I can't trace to anything.

just drop it. i'd be pretty surprised if the irs audits you over $600

 

[gill77]

Does sound a bit off. The threshold for filing non-employee compensation is $600. The phone number should be under their address I believe.

Be proactive. The IRS does match these to your return. If you have a Schedule C showing income of more than $600, with no other 1099's flowing into it, you probably won't hear from them. Otherwise, better to deal with the issue now. Dealing with an IRS notice with a deadline for taxes and interest to be paid often just results in a check being cut for no reason other than time and profession fees foregone.

 

[Fern]

If you haven't already, carefully go through bank info to ensure no $600 deposit is reflected.

I don't think "just dropping it" is going to solve it. Assuming a copy of the 1099 was filed with the IRS they will bill you for tax if the amount is not reported. When they get your tax return the numbers off it will be input into their matching system that compares what you reported to what they have received for you (stuff reported on W-2 and 1099s). You'll likely receive a computer generated notice asking for payment and, perhaps, penalties/interest.

It's very strange that RREEF has your name, address and SS#. Either you gave the info to them, or someone else did. If it wasn't you, someone else did and you may have a stolen ID problem.

You have their name, address and employer ID# on the 1099. Send them a certified letter about it.

Good Luck,

Edit: Post above mine is spot on. He beat me to it.

Fern

 

[JulesMaximus]

just drop it. i'd be pretty surprised if the irs audits you over $600

They won't audit him but they will adjust his return to include the income and reduce his refund (if he is due one) by that amount or bill him for the difference.

I'd call the company who sent you the 1099 and tell them they made a mistake. They don't have to file their 1099 report with the IRS until 1 month later than the deadline for sending out 1099s so they can probably correct it before it gets reported if you call them right away.

 

[SneakyStuff]

If you haven't already, carefully go through bank info to ensure no $600 deposit is reflected.

I don't think "just dropping it" is going to solve it. Assuming a copy of the 1099 was filed with the IRS they will bill you for tax if the amount is not reported. When they get your tax return the numbers off it will be input into their matching system that compares what you reported to what they have received for you (stuff reported on W-2 and 1099s). You'll likely receive a computer generated notice asking for payment and, perhaps, penalties/interest.

It's very strange that RREEF has your name, address and SS#. Either you gave the info to them, or someone else did. If it wasn't you, someone else did and you may have a stolen ID problem.

You have their name, address and employer ID# on the 1099. Send them a certified letter about it.

Good Luck,

Edit: Post above mine is spot on. He beat me to it.

Fern

SO! Interestingly enough... I was going through all of my records and noticed that I withdrew exactly $600 from my TD Ameritrade account some time ago. This was money leftover from a stock purchase in which I transferred a sum of money electronically from my Bank of America account to my TD Ameritrade account, made my stock purchase, then withdrew the remaining $600 and redeposited it into my Bank of America savings. I was under the impression that money was not taxable in any way/shape/form because it didn't fall into the gains from sale/earned dividends category. Still, it's very odd that I received the 1099 form in the mail from RREEF and not TD Ameritrade (considering I already received my itemized 1099 from them).

 

[KB]

SO! Interestingly enough... I was going through all of my records and noticed that I withdrew exactly $600 from my TD Ameritrade account some time ago. This was money leftover from a stock purchase in which I transferred a sum of money electronically from my Bank of America account to my TD Ameritrade account, made my stock purchase, then withdrew the remaining $600 and redeposited it into my Bank of America savings. I was under the impression that money was not taxable in any way/shape/form because it didn't fall into the gains from sale/earned dividends category. Still, it's very odd that I received the 1099 form in the mail from RREEF and not TD Ameritrade (considering I already received my itemized 1099 from them).

I would agree, that shouldnt be taxed as its not income. You t may be a coincidence.

Do you leave in a rental property and get some discounted rent? They seem to be involved in rental properties.

My thought is someone used your personal info to do some business with them. Definately check your credit report.

 

[Fern]

OP, under the circumstances you describe the $600 would NOT be taxable.

Here's a decent article on what to do upon receiving an erroneous Form 1099.

(In my experience the IRS generally relies heavily upon the reporting companies' 1099s and is unlikely to listen to you. The IRS wants the company issuing the 1099s to deal with it and correct it if justified)

See article: http://www.forbes.com/sites/robertw...-irs-form-1099-heres-what-to-do/#88ff48e70c1d

Fern

 

[SneakyStuff]

OP, under the circumstances you describe the $600 would NOT be taxable.

Here's a decent article on what to do upon receiving an erroneous Form 1099.

(In my experience the IRS generally relies heavily upon the reporting companies' 1099s and is unlikely to listen to you. The IRS wants the company issuing the 1099s to deal with it and correct it if justified)

See article: http://www.forbes.com/sites/robertw...-irs-form-1099-heres-what-to-do/#88ff48e70c1d

Fern

I will get in touch with them first thing Monday. Hopefully it was all a big misunderstanding and in no way related to identity theft.

Thank you so much for all of the helpful responses!