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Author Topic: 123RF MISC 1099 are Now Available  (Read 1298 times)

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angelawaye

  • Eat, Sleep, Keyword. Repeat

« on: April 13, 2017, 11:11 »
0
Just so everyone knows, 123 has provided a MISC 1099 for 2016 (Late).

I now have to file an amended return. My amended return looks exactly the same as my original but if I don't claim that MISC 1099 I could get a penalty and a bill from the IRS. (I originally claimed 123's income in OTHER gross income received).



steheap

  • Author of best selling "Get Started in Stock"

« Reply #1 on: April 13, 2017, 12:24 »
0
Thanks Angela. My tax person is just working on mine, but it is nice to get it right. Of course, this 1099 reports a different income that I had estimated and I also have an amended 1042-S that reflects a bit of income against which they withheld federal tax!

Steve

« Reply #2 on: April 13, 2017, 12:45 »
0
Just so everyone knows, 123 has provided a MISC 1099 for 2016 (Late).

I now have to file an amended return. My amended return looks exactly the same as my original but if I don't claim that MISC 1099 I could get a penalty and a bill from the IRS. (I originally claimed 123's income in OTHER gross income received).

Grrr,  >:( I just noticed that my "new" 1099 claims I earned $50 more than what I actually been paid through Paypal and already filed on my tax return

angelawaye

  • Eat, Sleep, Keyword. Repeat

« Reply #3 on: April 13, 2017, 12:46 »
0
Mine was only .50 cents off from the PayPal payments. So my income changed by $1 now.

« Reply #4 on: April 13, 2017, 14:06 »
0
Mine was only .50 cents off from the PayPal payments. So my income changed by $1 now.

Did you sum-up the payments reported for 2016 on the website payment tab?

For me, it is matching to the cent my Paypal query, which makes me wonder why their 1099 form claims a different total payment amount.

If that matters, the amount of sales made in 2016 is falling somewhere in between the total Paypal payment and what 1099 claims I got.
« Last Edit: April 13, 2017, 14:11 by Zero Talent »

« Reply #5 on: April 13, 2017, 14:19 »
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I already filed when they did not provide it on time. I reported anything I received from agencies who did not provide 1099-MISC on time together as additional income. Same as last year.

I still do not understand why I got 1042-S if I am clearly not a non-resident alien. You cannot be both so I think you should either get 1099 or 1042 not both of them. One form contains my SS# and the other does not.

w7lwi

  • Those that don't stand up to evil enable evil.
« Reply #6 on: April 13, 2017, 14:44 »
0
And just to confuse things further, they did not report my earnings in the correct box.  According to the IRS, sales of stock images are considered royalty payments which belong in 1099-MISC box 2.  For myself, they reported it all in box 7 ... Nonemployee compensation.   >:(

« Reply #7 on: April 13, 2017, 14:57 »
0
And just to confuse things further, they did not report my earnings in the correct box.  According to the IRS, sales of stock images are considered royalty payments which belong in 1099-MISC box 2.  For myself, they reported it all in box 7 ... Nonemployee compensation.   >:(

Ive been audited for this exact reason and specifically because of 123. An explanation from my cpa was enough to resolve, but the heart attack one gets when they receive a letter from the irs is not so fun.

angelawaye

  • Eat, Sleep, Keyword. Repeat

« Reply #8 on: April 13, 2017, 15:21 »
+1
Exactly why I am amending it to include the MISC 1099 - I don't want a heart attack.
Next thing I know I get a bill saying I did not report it and I owe them 20 percent ... plus penalties and interest.

« Reply #9 on: April 13, 2017, 16:05 »
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My issued 1099 is hundreds of dollars more than what was reported in the earnings section on their site.  And I, like many of you, already filed.  And since I only had my records and their site's earnings report on my dashboard to go on, that's the income I reported.  (My records and their dashboard report were only a few cents off.)

I talked to my accountant.  She said companies that issue 1099-MISC forms late are subject to a $50-per-form penalty.  (She thinks it's $50, but wasn't sure.)

So, if 123RF has 2,500 artists (I'm guessing), that could be a $125,000 fine.

She also thinks that perhaps 123RF just issued US the 1099-MISC forms and didn't send them into the government (to avoid any penalties).  But that is also illegal (apparently).

I sent 123RF an email stating I want a corrected 1099-MISC sent to me with the proper amount in the ROYALTIES box.  We'll see if they comply, 5 days before taxes are due.

« Reply #10 on: April 13, 2017, 17:25 »
0
I sent 123RF an email stating I want a corrected 1099-MISC sent to me with the proper amount in the ROYALTIES box.  We'll see if they comply, 5 days before taxes are due.

I also did that. Let's see what their answer will be.

« Reply #11 on: April 13, 2017, 21:16 »
0
And just to confuse things further, they did not report my earnings in the correct box.  According to the IRS, sales of stock images are considered royalty payments which belong in 1099-MISC box 2.  For myself, they reported it all in box 7 ... Nonemployee compensation.   >:(

Ive been audited for this exact reason and specifically because of 123. An explanation from my cpa was enough to resolve, but the heart attack one gets when they receive a letter from the irs is not so fun.

Why does anyone still deal with 123RF who are causing problems, audits, wrong numbers, poor earnings and incompetent two month late reporting. WHY!

« Reply #12 on: April 13, 2017, 22:25 »
0
Just so everyone knows, 123 has provided a MISC 1099 for 2016 (Late).

I now have to file an amended return. My amended return looks exactly the same as my original but if I don't claim that MISC 1099 I could get a penalty and a bill from the IRS. (I originally claimed 123's income in OTHER gross income received).

Grrr,  >:( I just noticed that my "new" 1099 claims I earned $50 more than what I actually been paid through Paypal and already filed on my tax return

About the same for me too.  I am not sure where they came up with that number. $54 higher than my PayPal receipts from 123rf. If they were calculating it like Fotolia does, based on sales (credits) earned even if they were not paid out they screwed it up even worse.

« Reply #13 on: April 13, 2017, 22:55 »
+1
This is such BS!!!  Nearly everyone's taxes are done and submitted already and they pull this cr@p!

I found out too late tonight to reach my accountant,  but since I included their total in other earnings, hopefully he can just send in the 1099 with an explanation and not have to file a whole amended return.  He already charges an arm and a leg.  Now I guess he can tack on another $100 or more to his bill.

Can't believe how much this sucks.  I've already been paid for three months this year by 123, so I might as well finish out the year.  Guess I can look forward to going thru this again with them next April.  A$$holes. 

I'm probably going to drop them in Dec. though.  Seeing as I made 4k there, I  would like to stay, but not for this level of headache.

 >:(

« Reply #14 on: April 14, 2017, 10:12 »
0
And just to confuse things further, they did not report my earnings in the correct box.  According to the IRS, sales of stock images are considered royalty payments which belong in 1099-MISC box 2.  For myself, they reported it all in box 7 ... Nonemployee compensation.   >:(

Ive been audited for this exact reason and specifically because of 123. An explanation from my cpa was enough to resolve, but the heart attack one gets when they receive a letter from the irs is not so fun.

Why does anyone still deal with 123RF who are causing problems, audits, wrong numbers, poor earnings and incompetent two month late reporting. WHY!

This is the first time this has happened.  Just found out yesterday about this 1099 magically appearing 2 business days before taxes are due.

 Been with them for years.  But you're right, if it happens again I'm out of there!  Totally not worth it!

« Reply #15 on: April 15, 2017, 14:26 »
+1
UPDATE :  Talked with my accountant.   He said it was a non issue as long as your "other income" is more than the 1099.  He said the IRS adds up the 1099s you get and as long as the total is equal or less than the total earnings you claimed, it's fine.  Nothing has to be done. Only problem is if the total of the new 1099 is MORE than your total other misc. Income. 

Big relief for me.  Hope it is for others.

« Reply #16 on: April 15, 2017, 16:50 »
+1
UPDATE :  Talked with my accountant.   He said it was a non issue as long as your "other income" is more than the 1099.  He said the IRS adds up the 1099s you get and as long as the total is equal or less than the total earnings you claimed, it's fine.  Nothing has to be done. Only problem is if the total of the new 1099 is MORE than your total other misc. Income. 

Big relief for me.  Hope it is for others.

My guy said the same thing. 


« Reply #17 on: April 18, 2017, 11:10 »
+1
UPDATE: I just got a new corrected 1099!

Now the amount they report is matching to the cent my Paypal query, as well as the sum of all 2016 payouts reported under my account, therefore what I already claimed on my tax return.

Feeling better now.


 

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