Frustrated-in-I L
Level 9
03-22-2024
01:48 PM
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I know the NEC form is new but I have had a number of these instances with Form 1099MISC when something was coded as subject to SE tax when it was not. I had always paper filed with a statement explaining why the payment was not subject to SE tax. In only one instance did the IRS respond with a notice. In that case, I basically copied what was sent with the return originally and that one went away as well.
I had hoped to file electronically and yes, pay the Medicare tax as suggested by the administrator. But as I said yesterday, I will suggest to my client that we paper file with a statement claiming the payment is not trade or business income and see what happens.