# Any guesses on how to handle a 2014 1099 for a check that didn't show up till 2015?



## mlappin (Jun 25, 2009)

So, between the drop in prices and some pretty severe damage from excessive rain, I received a pretty healthy payment from crop insurance, now here comes the kicker, didn't actually receive the check until the last part of the first week of January but just received a 1099 for 2014 from the crop insurance company.

Should I actually have to claim income for 2014 that wasn't available to me until 2015?

My fiscal year runs Jan 1 till Dec 31.


----------



## hog987 (Apr 5, 2011)

What date was on the printed check?


----------



## rjmoses (Apr 4, 2010)

If the check is for a smaller amount, say under $2000, it probably isn't worth your time and effort to straighten it out and maybe end of with a bigger paperwork mess.

Otherwise, if the check is dated 2015, then contact the person or business and have them re-issue the 1099. They have until February 28 to submit their copy to the IRS.

Just make sure you keep copies of all the paperwork in a separate folder should you ever need it.

Hope this helps.

Ralph


----------



## haybaler101 (Nov 30, 2008)

I moved a crop insurance check issued in 2012, deposited in 12 and 1099ed in 12 to 2013. My accountant said it was perfectly legit and took care of paper work. I always tell him when he signs the return, that entitles him to the cell next to mine.


----------



## OhioHay (Jun 4, 2008)

Check with your accountant, but I believe you can put the bushel loss on either year. The revenue part of the loss would have to go with the check date. I think this is how my accountant explained it


----------



## mlappin (Jun 25, 2009)

rjmoses said:


> If the check is for a smaller amount, say under $2000, it probably isn't worth your time and effort to straighten it out and maybe end of with a bigger paperwork mess.
> 
> Otherwise, if the check is dated 2015, then contact the person or business and have them re-issue the 1099. They have until February 28 to submit their copy to the IRS.
> 
> ...


Check was dated 2014 but didn't show up till after the New Year.

I didn't even meet with the adjuster till near Christmas.

A wee bit more than I planned on having in income for last year.


----------



## rjmoses (Apr 4, 2010)

If you're on cash basis accounting, then when you received the check is the important date. If the check was dated about Dec 28-30th and you got it Jan 2nd-4th, I'd call it close enough and not worry about it. I would call it 2014 income.

A lot of automated 1099 systems just go off of the date the check was printed by the system.

If it keeps you in the same income tax bracket, no big deal--you pay this year or next year. If it bumps you, .....

Ziggy cartoon today:

http://assets.amuniversal.com/b61712a088ad0132c1ed005056a9545d

Ralph

"My steak and lobster dinners have become fishsticks and sliders."


----------



## swmnhay (Jun 13, 2008)

My adjuster told me we had to wait to file the claim until after Jan 1 or the system would automatically send a 1099 when the claim was filed.Yhis was explained by the agent and the adjuster plus a letter was sent last fall explaining it.Some agents are better then others keeping you informed.


----------



## mlappin (Jun 25, 2009)

swmnhay said:


> My adjuster told me we had to wait to file the claim until after Jan 1 or the system would automatically send a 1099 when the claim was filed.Yhis was explained by the agent and the adjuster plus a letter was sent last fall explaining it.Some agents are better then others keeping you informed.


And there you go. I have a feeling even if the check was lost in the mail and it just showed up now, since the 1099 was dated for 2014 the IRS will make me claim it no matter what. I'll still check with them, but I have a feeling they don't care if I didn't have it in time to actually pay any 2014 bills.


----------



## slowzuki (Mar 8, 2011)

Are you cash or accrual accounting? We have the option up here, farms are about the last business of any size still permitted to do cash basis.


----------



## mlappin (Jun 25, 2009)

slowzuki said:


> Are you cash or accrual accounting? We have the option up here, farms are about the last business of any size still permitted to do cash basis.


Cash, much simpler


----------



## swmnhay (Jun 13, 2008)

slowzuki said:


> Are you cash or accrual accounting? We have the option up here, farms are about the last business of any size still permitted to do cash basis.
> [/quote.


Do you have to do 1099's in Canada?A 1099 is filled and reported to the IRS so it better jive with your tax return for the tax yr.Crop insurance procedes.Any custom work pd over $600 requires a 1099 here.Rent pd.Also get for any divedends received.Interest received.Interest pd.Brockerage profit or loss.health saveing account.Now some of the elevators are putting grain sales and deferred payments also on 1099's.Prly missing a few but I got a whole stack of them on desk.


----------



## rjmoses (Apr 4, 2010)

swmnhay said:


> Prly missing a few but I got a whole stack of them on desk.


A couple of years ago, the IRS wanted everyone who paid somebody more than $600 in a year to have file a 1099. They wanted every payment tracked!

I was all in favor--drown them suckers in paper!

Ralph


----------



## endrow (Dec 15, 2011)

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Crop-Insurance-and-Crop-Disaster-Payments-Agriculture-Tax-Tips


----------



## rjmoses (Apr 4, 2010)

endrow said:


> http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Crop-Insurance-and-Crop-Disaster-Payments-Agriculture-Tax-Tips


Great find, endrow! Thanks.

Ralph


----------



## rjmoses (Apr 4, 2010)

This article:

http://www.marketwatch.com/story/here-are-five-obama-tax-proposals-that-make-no-sense-2015-02-03?link=mw_home_kiosk

mentions that Obama wants to, among other things:

a) Force independent contractors to become employees. (How would you feel about working for Monsanto?)

 Force businesses purchasing more than $600 goods or services to send a 1099.

Ralph


----------



## slowzuki (Mar 8, 2011)

Here we have a similar system but a bit different - t-slips - interest payments have them. Employees have them - contractors don't. The rules for who is contractor vs employee are very strict. Employees are a mountain of paper, contractor simple and they look after it on their end.

On the flip side small contractors audited all the time because the temptation to not declare income is pretty high.

For the farm I have to file a t2024 which breaks down all the farm income and expenses and financials.


----------



## Bonfire (Oct 21, 2012)

rjmoses said:


> A couple of years ago, the IRS wanted everyone who paid somebody more than $600 in a year to have file a 1099. They wanted every payment tracked!
> 
> I was all in favor--drown them suckers in paper!
> 
> Ralph


My accountant advocates two things as it concerns 1099's:

1) Make sure you track and issue these $600+ vendors/individuals (not corps or LLC's). Don't want to go through an audit and be fined for failure to file them. Don't blow it off.

2) 1099 any lawyer you hire. Based on some seminars he's been to with the IRS, I guess the IRS has a funny feeling that there are some lawyers out there that are pocketing some of the fees they collect and never report it. IDK.


----------



## rjmoses (Apr 4, 2010)

Bonfire said:


> My accountant advocates two things as it concerns 1099's:
> 
> .......
> 
> 1099 any lawyer you hire. Based on some seminars he's been to with the IRS, I guess the IRS has a funny feeling that there are some lawyers out there that are pocketing some of the fees they collect and never report it. IDK.


A dishonest lawyer???!!??? "Tell me it isn't so, Joe!"

Ralph


----------



## swmnhay (Jun 13, 2008)

My accountant sent out reminder for 1099's awhile back.She had lawyer fees highlighted in yellow.Wonder why?LOL.


----------



## Bonfire (Oct 21, 2012)

swmnhay said:


> My accountant sent out reminder for 1099's awhile back.She had lawyer fees highlighted in yellow.Wonder why?LOL.


Really!!! Your accountant emphasized it huh? I think this just puts another notch of confidence in my accountant. Musta been at the same seminar.


----------



## mlappin (Jun 25, 2009)

It's all handled right in Turbotax if you use it.

With personal deductions for my own medical adventures last fall, prescription costs and copays, medical mileage, then with the wife driving to the northern edge of the county every month since last August for an AICD check I had enough deductions that I didn't defer any of the income from the crop insurance into 2015. Figure might as well get it done and out of the way.


----------

