1099-K sent to IRS, but never received by "recipient."

[BobKamman]

I'm not sure that those four-letter snippets are enough to hide the identity of the client.  Looks like a Stanley Hoover to me.  I'm curious what happened between October 2023 and March 2024.  Was the CP-2000 ignored, perhaps the same way the 1099-K was ignored?  Does the client have a clue as to who paid him $148,900 that year?  It should have been reported whether he received a 1099-K or not.  ("We have a tax on income, not on pieces of paper.")  Was it in fact reported?  Maybe on an 1120-S instead?  You don't generally see Schedules C with numbers that high.  

I found an Intuit EIN, and that's not it.  But they do have an office at that Woodland Hills  "high-rise campus setting" with a "26-story skyscraper" and "585,848 SQFT."  What are the chances that another tenant also has a name beginning with Intu?  Or that another building with a street number of 21650, somewhere in the world, matches that description?

In October I would have asked IRS for the information from the 1099-K, which has to include the full name and phone number.  It might not have been provided, and the easiest way to get it now may very well be to pay the $60 Tax Court petition fee.  

[BobKamman]

The more information we have the more useful we can be.  So to repeat, "I'm curious what happened between October 2023 and March 2024.  Was the CP-2000 ignored, perhaps the same way the 1099-K was ignored?  Does the client have a clue as to who paid him $148,900 that year?"

[BobKamman]

People who want free advice are welcome to post here. So are people who want to point out, for the benefit of all readers, how it is important to know as many facts as possible, before suggesting a solution.

After my first reading, I thought you were saying that the client denied receiving the CP-2000 in October 2023. Every CP-2000 I have seen tells the taxpayer not to file an amended return, just respond to the notice. They also list the sources of 1099 information matched to the return. So was anything done with the CP-2000? Or did your involvement just start after the March 2024 SNOD?

We now learn that you are using TurboTax to file amended returns. For the benefit of others here, that is not the way to respond to a CP-2000 or a SNOD.

The “Merchant Category Code” here of 8661 is a clue. That is for Religious Organizations. There is a person with a name that fits your client’s abbreviated version, who lives in Maryland, where based on earlier posts you seem to have some connection. He is involved with a religious organization, which has an address that starts with 301 KE. So what I see here, just wildly speculating, is maybe this money was paid to the church, and at some point someone asked for a name and SSN, and your client made the mistake of giving them his. Maybe these are donations? From Intuit employees? Intuit sells software, I don’t know why they would be issuing a 1099-K to a religious organization, maybe Intuit expert @Jim-from-Ohio knows.

At this point, stop the train from leaving the station by filing the Tax Court petition, making sure to US mail it to the right address and not to use one of the FedEx or UPS methods that is not acceptable. Keep proof of mailing. Don’t wait until the last minute. The case will be assigned to an Appeals officer in due course –  maybe six months – and you can work it out then. Tell your client that the road to Hades is paved with good intentions, but if someone asks for his SSN, keep his mouth shut and his pen in his pocket.

[BobKamman]

An English theologian, J. B. Phillips, in 1947 wrote “Letters to Young Churches,” a modern translation of Paul’s New Testament letters. If you want to learn more about the Bible, read the book. It was recommended in 1952 by C. S. Lewis, author of "Chronicles of Narnia" and close friend of JRR Tolkien. If you want suggestions for how new churches (and established ones) can avoid tax problems, including those related to 1099-K forms, there is a website for that.  I suspect Intuit's Credit Karma app is involved with all this.

 https://www.startchurch.com/blog/view/name/new-tax-rule-what-churches-must-know-about-paypal-venmo-a... 

Here is some of their advice:

Audit your payment accounts

Many church planters begin their journey using their personal finances and bank accounts—including payment apps. Maybe you’ve been focused on building your church plant or ministry the last few months, and you haven’t switched over your payment accounts from your personal details to your church’s details. To make sure everything is in order for your ministry, it’s a good idea to take time to audit your payment accounts.

Here are three steps to take: 

1. Check your payment accounts and apps to ensure your:
1. Your church’s FEIN is correct
2. Your church or ministry is listed as the account holder
3. Your apps and accounts are connected to the church’s bank account
4. Your address and any additional information listed are under your organization’s name and not an individual’s name.
2. You may need to set up entirely new accounts if you have everything stored under personal accounts.
3. If you haven’t done so already, start the process of obtaining 501(c)(3) tax-exempt status for your organization to receive tax-deductible contributions. 

[Just-Lisa-Now-]

Doesnt that say the 1099K was issued by INTU, that sounds like Intuit to me (Oh I just saw in one of the posts about, you had this information, lots of dig through up there, sorry). 

What kind of business is he in?  Does he use Intuit for any type of payment processing?

Have you pulled a wage and income transcript?  Is it on there? 

I have a client with Misidentified Income on multiple 1099NECs  attributed to her on a CP2000 (she's never been self employed or in the healthcare field where these 1099NECs originated from), but when I pull a wage and income transcript it shows nothing, Ive been fighting with IRS for a year now to get this fixed.

[IRonMaN]

Actually, I think it is in the IRS's hands and the IRS works in mysterious ways.

[qbteachmt]

You posted on a software users' peer community internet forum. This is not Intuit Support or customer service or the IRS. The comments here from Bob make it pretty clear you have not protected your client's info from the world wide web by posting that image. I recommend you edit what you can edit to clean up this topic that is available to anyone reading this topic; they don't even need to be logged in to see it. Perhaps then, @BobKamman can also edit his replies to remove similar info from his analysis. You are asking about an Intuit action, but none of the peer users have anything to do with Intuit's business. It's good to help each other, but not at the expense of compromising a client's info.

[BobKamman]

@qbteachmt Soon enough the world is going to have access to the story, when a Tax Court petition is filed.  Although, at that point only the taxpayer's name and state of residence will be shown.  You'll have to visit the courthouse in DC to see the petition and other details.  And the SSN should be blacked out, if the taxpayer has competent representation. 

If that's the case, the next step is to anticipate the same problem for 2022 and 2023 and prevent it for 2024.  I'm fairly sure that this relates to the Credit Karma subsidiary of Intuit, and you're right, just because we are Intuit software customers doesn't mean we know anything about their side gig.   Since we now know that the taxpayer is retired (an online article indicates, since 2018), that explains why he may not have seen the 1099-K sent to his former work address (301 Kent).  Someone there should have access to the account where these payments are being made and forms are being sent, and change the data from SSN to EIN.  

The monthly payments shown on the 1099-K could be a compilation of dozens of individual payments.  The bank accounts that need to be "audited" are those that received these payments.  That is what IRS is going to want to see.  Since the payee seems to be a conference of churches, maybe this money is coming from member churches, rather than from church members.  I have no clue why an amended return would be filed in this situation.  Was the explanation, "not my money, they shouldn't have used my SSN" ?  I hope it wasn't the "trick the IRS computer" maneuver of adding it all in to a Schedule C and then subtracting it all out.  

[BobKamman]

@Just-Lisa-Now-   All of the poster's comments have been removed, does that mean you lose credit for your right answer?  (Which ignored my solution, but as you wrote, there was a lot to wade through.)  

[qbteachmt]

It didn't all have to be removed, but it should at least have been sanitized. Summary:

A retired minister's personal info was on a church account where there are proceeds processed by Intuit's payment settlement services. This resulted in a 1099-K in his name (using old contact info). We don't know if that was his responsibility on behalf of the church, or used to be, but the correspondence from the IRS regarding tax year 2021 was a big surprise and a PITA to deal with so far.

It's safe to assume someone somewhere has been getting this money and this info. The problem has developed over time, somewhere at least one ball got dropped, and someone should have followed up with someone else, as usual.

[Just-Lisa-Now-]

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@BobKamman wrote:

@Just-Lisa-Now-   All of the poster's comments have been removed, does that mean you lose credit for your right answer?  (Which ignored my solution, but as you wrote, there was a lot to wade through.)  

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well dang it, now we'll never know what really happened.   Who got the money?

[IRonMaN]

This post certainly will be helpful to the next person who has the exact situation as JIm's 😬

[BobKamman]

@IRonMaN You mean, like trying to file an amended return with TurboTax after a Notice of Deficiency is received?  

[abctax55]

This makes me think of the 

"Don't go away mad, just go away"