Dropdown menu on all 1099 forms!

[etaxbiz]

There should be a dropdown menu on all 1099 forms, so that we can link each one to a particular Schedule... instead of having to input the numbers twice

[sjrcpa]

You don't have to input twice. Most of the time skip the 1099 entry point and just enter where it belongs - like Sch C Gross 

[etaxbiz]

Yes... it is necessary.

I have a few clients who have received an "Underreporter Notice", simply because I did not input the original 1099 details (as you've suggested)

[BobKamman]

That doesn't make any sense because nothing is reported but amounts on paper returns, and those taxpayers don't receive CP-2000 notices.  

[etaxbiz]

@BobKamman... Your comment doesn't make any sense. Have you ever looked at a 1099-misc form? Are you aware of the information contained on that form? Are you aware that the Payor sends copies to the Federal, State & Local tax departments? By inputting the details of the 1099 form, you are proving that amount has been included within the Gross income of a Schedule C,E... etc. (Per the IRS agent we spoke to as we confirmed that it was already included within the Gross that was reported).

Personally, I'd prefer to input only into the Schedule... but, if it will stop the inquiry from the IRS, as to whether or not it was included... I will surely do it.

(I've only had this problem happen with a few Schedule C clients... not 1120, 1120S nor 1065 filers)

[BobKamman]

Have you ever read the Internal Revenue Manual about how the Underreporter Program works?  After 50 years of not attaching 1099's to paper returns (unless there is withholding), I have yet to see one receive a CP-2000 because the source of income was not identified.   You can speak with as many GS-4 IRS "agents" as you want, many of them are like the blind men trying to describe an elephant, but it's unlikely that any of them have ever used software with dropdown boxes.  And you have one for 1099-MISC and 1099-NEC anyway, right?  So maybe be more careful about actually using it.  

The IRS Automated Underreporter Program covers 11 million paper-filed returns each year, with no 1099's attached if there is no tax withholding, and its “agents” don’t have any problem working with the computer matching that has already been done before they get the case. If you don’t believe me, here is how the IRM describes the process:

“A computer tape containing Form 4251 (Return Charge-Out) data is printed on a campus printer for paper returns. . . .Returns are pulled by Federal Records Centers (FRC) and forwarded to the Campuses.

“Paper returns are uploaded using scanning software to load them into the AUR system to build systemically.

“Cases with paper returns are received and scanned into the AUR system by the clerical function. As paper cases are scanned and systemically built into Screening Batch Types (BTs) 01 - 26 they are controlled in the AUR system. Screening batches are requested by technical units to be worked.”