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

[jskouberdis]

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.

[IRonMaN · Accepted solution]

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.

[Just-Lisa-Now-]

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.

[PATAX]

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

[PATAX]

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

[joshuabarksatlcs]

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?