Who is responsible for issuing a 1099-Div for a liquidating distribution

Forum|Forum|4 years ago
May 28, 2022
5 replies
42 views

If I as the independent accountant issue a 1099-Div for a liquidating distribution for a client of mine in their final year and I give them the 1096 and 1099-Div to sign and mail in and they neglect to mail in the form are they liable for any penalties. Also if I as the preparer prepared and gave to client to sign and mail in is there any penalties assigned to me. My feeling is that I did my job and it is up to the business owner to mail in to the IRS and all penalties would fall on them. What is the communities opinion.

ProSeries Professional

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Best answer by IRonMaN

You did your job, they didn't do theirs. In the event there were any penalties, the client can go look in the mirror to find out who is responsible.

IRonMaNAnswer

Level 15

You did your job, they didn't do theirs. In the event there were any penalties, the client can go look in the mirror to find out who is responsible.

Slava Ukraini!

joshuabarksatlcs

Level 9

RE: In the event there were any penalties, the client can go look in the mirror to find out who is responsible.

And in the real world, many a client will be asking:

Mirror, mirror on the wall, who's the deepest pocket of them all?

I come here for kudos and IRonMaN's jokes.

Just-Lisa-Now-

Intuit Community Champion

whos to say the client did mail it and IRS just lost it in all their craziness...just keep a copy on file, in the event of an audit, they would ask you to produce a copy.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

PATAX

Level 12

Maybe it could have been one of the millions of informational returns which were allegedly destroyed I believe back in March of 2021???

PATAX

Level 12

It is their responsibility to mail the forms in and if they do not, then that is their problem. I think you are okay. Also keep in mind that we only prepare returns for clients that we specifically agreed to prepare. For example, some clients may do their own payroll tax returns or have a payroll processor do it. Other clients they do their own sales tax, etc.... just my opinion

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