Addresses on 1099

Discussion in 'Professional Trading' started by DataCruncher, Jan 30, 2008.

  1. Does anyone know if this could cause any problems:

    my broker's 1099 that was sent to the IRS has my old address on it. the 1099 sent to me by my broker has my new updated address.

    I am asking because I know the IRS uses computers to check to see if W-2s match up exactly and I'd hate to get flagged over a stupid technicality
  2. *bump*

    can anybody shed some light on this? has anybody actually been through an IRS field audit where they come and visit your house?
  3. Schaefer


    I can't speak for the 1099, but one of the W2s I get every year for the last 10 years, has my old address on it. Since I personally pick it up every year, I never bothered to change the old address with my employer.

    I've been filing my returns this way for many years, and never a word from the IRS.

    Good luck,

    PS: Please consult with an accountant, as your individual performance may vary :D
  4. Schaefer,
    Thanks I really appreciate the info. When you file your returns, do you do it electronically? And if so, when you enter into the info into say Turbotax, do you put exactly what it says on the W-2(i.e. the old outdated address) or do you use your new address when you enter the W-2 electronically?
    I know it probably sounds like I'm splitting hairs but I just don't want to get audited over some stupid technicality.

  5. Schaefer


    That's alright. I've been using Turbo Tax for many years, and no, I never change the address. I always enter the actual address on my W2. In fact, I just let Turbo Tax trasfer all the info from previous year, to current return.


    Edit: I should let you know, that I hold multiple jobs, and work 7 days a week. My other W2s have the correct, and current addresses on them. I just fill in the whatever address is on the W2 into Turbo Tax. And I always do the direct deposit thingy, so I don't have to worry about getting the check sent to the wrong address.

    Come to think of it, I pretty much owe them almost every year :D
  6. sim03


    The IRS may be a remarkably wasteful and inefficient bureaucracy, but not enough so "to see if W-2s [or other forms] match up exactly." Or they'd be doing nothing but wasting their time investigating millions of meaningless, non-revenue-generating mismatches.

    The IRS does match the amount reported on each W-2, 1099-R, -DIV, -INT, -G, -MISC, etc. against the amounts you, the taxpayer, have reported on your individual tax return. The matching is done by SSN - the only unique identifier available - so even if, say, your name is misspelled or a different address is shown on the form, that's neither going to prevent the matching check nor cause problems for you.

    Yes, you enter the actual address from the W-2 and check the box for "different address." But no such option for a 1099, which is what you are concerned about, right?

    Just make sure that all the SSNs are correct and that you don't "accidentally" forget to report one of the forms...
  7. sim03,
    Thanks for the info, it is much appreciated. I'm curious, how did you find this out about how the internal IRS mechanics work?
  8. I send out and receive quite a few 1099's each year in my business. You'd be surprised at some of the errors on the ones I get and I know I've sent them out to old addresses. I've been audited before and every couple of years the IRS will contact me with questions about my returns but they've never had any questions about 1099's.
  9. bigarrow,
    any idea what triggered the audit?
  10. I made a mistake on my employees withholding taxes, while they were there they decided to go over all my books. It went smooth, the guy was really easy to work with, I had to pay some penalty and interest but overall I think they were fair to me. I've delt with the IRS several times over the last couple of decades and I don't have anything bad to say about the way I was treated except for this one real nasty lady I'd get on the phone sometimes but she wasn't in charge of anything so it didn't affect me.
    #10     Feb 14, 2008