PonziScams.com Schemes & Due Diligence

False 1099 Forms New From IRS

There are a few things I will go over here.

Failure to Furnish Correct Payee Statements

26 USC, Section 6722, states that any failure to furnish a payee statement on or before the date prescribed therefore to the person to whom such statement is required to be furnished and any failure to include all of the information required to be shown on a payee statement or the inclusion of incorrect information….shall result in a penalty of $50 for each statement with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000.

The draft regulations provide special rules for soliciting an individual’s TIN. The section 6723 penalty may apply to any individual who is required (but fails) to furnish his or her TIN to an institution or insurer. An institution or insurer that complies with the rules for soliciting the individual’s TIN will not be penalized for any failure to obtain or include a correct TIN on a Form 1098-T or the related information statement.

Failure to Comply with Other Information Reporting Requirements

26 USC, Section 6723, states that a failure by any person to comply with a specified information reporting requirement on or before the time prescribed therefor…shall result in a penalty of $50 for each such failure, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000.

The proposed regulations generally follow the rules under section 6724 for waivers of penalties for certain failures due to reasonable cause.

You may also want to check out This IRS Form 3949-A, It is a to Make a Report of False Tax Documentation, another words, if you receive a False 1099 from a Program, Fill out this Form!

http://www.irs.gov/pub/irs-pdf/f3949a.pdf
TIP: You can find their EIN number or SSN Number on the 1099 Form they Sent you!

Another point to make is if you had a Loss you can Fill out a Capital Loss Statement.

http://www.irs.gov/pub/irs-pdf/f6781.pdf

AS ALWAYS I AM NOT A LAWYER, TAX PROFESSIONAL OR IRS AGENT. PLEASE SEEK PROPER LEGAL AND PROFESSIONAL COUNSEL!