Relative got an approx $2000 check in *2020* as part of the High Tech Employee class action case. The check came with a *2015* W-2 and
a *2015* 1099-MISC with Box 3 Other income.
Do they really need to go and amend their 2015 return at this point?
Or can they just wait for the IRS to notice (if it does) and bill them?
Thanks!
On 7/10/21 7:32 AM, Rich wrote:
Relative got an approx $2000 check in *2020* as part of the High Tech Employee class action case. The check came with a *2015* W-2 and
a *2015* 1099-MISC with Box 3 Other income.
Do they really need to go and amend their 2015 return at this point?
Or can they just wait for the IRS to notice (if it does) and bill them?
Thanks!
I am going to assume that you are referring to the class action suit
against Adobe, Google, Apple, Intuit and a few other companies claiming
they colluded to not actively seek each others employees. The suit was settled in 2015. The settlement funds were distributed in 2015 with a
W-2 and a 1099-MISC included with the check. 1/3 of the settlement was
wages on the W-2. The 2015 payments should have been reported on the
2015 tax return as wages and other income. I am guessing that the 2020 distribution was sourced from a reserve that was not distributed in 2015.
This distribution (given the above assumptions) is 2020 taxable income
to the recipient. IMHO those IRS Forms should have said 2020 and not
2015. They are 2020 taxable income as the recipient received the
payment in 2020 and was never in construction receipt of that amount
prior to 2020.
--
On Saturday, July 10, 2021 at 3:44:52 PM UTC-4, Alan wrote:
On 7/10/21 7:32 AM, Rich wrote:
Relative got an approx $2000 check in *2020* as part of the High TechI am going to assume that you are referring to the class action suit
Employee class action case. The check came with a *2015* W-2 and
a *2015* 1099-MISC with Box 3 Other income.
Do they really need to go and amend their 2015 return at this point?
Or can they just wait for the IRS to notice (if it does) and bill them?
Thanks!
against Adobe, Google, Apple, Intuit and a few other companies claiming
they colluded to not actively seek each others employees. The suit was
settled in 2015. The settlement funds were distributed in 2015 with a
W-2 and a 1099-MISC included with the check. 1/3 of the settlement was
wages on the W-2. The 2015 payments should have been reported on the
2015 tax return as wages and other income. I am guessing that the 2020
distribution was sourced from a reserve that was not distributed in 2015.
This distribution (given the above assumptions) is 2020 taxable income
to the recipient. IMHO those IRS Forms should have said 2020 and not
2015. They are 2020 taxable income as the recipient received the
payment in 2020 and was never in construction receipt of that amount
prior to 2020.
--
Another, albeit slim, possibility is that the 2020 check was a replacement
of the 2015 payment which was still outstanding. If so, reissuing of the
2015 tax documents would be in order.
Ira Smilovitz, EA
Leonia, NJ
Relative got an approx $2000 check in *2020* as part of the High Tech Employee class action case. The check came with a *2015* W-2 and
a *2015* 1099-MISC with Box 3 Other income.
Do they really need to go and amend their 2015 return at this point?
Or can they just wait for the IRS to notice (if it does) and bill them?
Thanks!
On 7/10/2021 9:32 AM, Rich wrote:
Relative got an approx $2000 check in *2020* as part of the High Tech Employee class action case. The check came with a *2015* W-2 and
a *2015* 1099-MISC with Box 3 Other income.
Do they really need to go and amend their 2015 return at this point?
Or can they just wait for the IRS to notice (if it does) and bill them?
Thanks!
In 2020, if the IRS received W-2 and 1099-MISC filings (why did your
friend receive both a W-2 and 1099-MISC?) for $2000 of 2015 income, I
would expect the IRS to more or less ignore the information. By 2020,
the general 3 year the statute of limitations for timely filed 2015
returns has expired. None of the exceptions that extend the SOL to 6
years or infinity are in evidence here. Even if your friend goes to the effort to file an amended return for 2015 and pay the newly calculated
taxes due, the IRS may well reject the amended return as untimely filed
and return the 'over payment'. This seems like a "let sleeping dogs
lie" situation.
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