Question

Incorrect 1099-MISC from Investing Account

Forum|Forum|4 years ago
April 12, 2022
1 reply
0 views

I used Cashapp to do some investing last year (roughly $500 profit) but apparently at some point the wrong tax identifier information was added to my account and all the investing I did was done in a another person's name (family member). So this February when I received a 1099 form from CashApp it was with an incorrect name AND social security number. I've been trying to get this resolved for two months but they've given me the run around and it seems like in the end they will not be correcting the form.

What can I personally do to file my taxes correctly reporting the income in MY name while also informing the IRS that the investment income is my tax liability and not the family member's?

JohnB5677

If Cashapp isn't willing to make the change (I agree with that policy), you will not be able to file those transactions in your name.

I suggest you bring this to the attention of the other family member because they will get a tax notice if they don't report the income on their return.

I also suggest that you completely close that existing Cashapp account and open the new one in your name.

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4

4ngelicAuthor

There's no way to claim these transactions directly with the IRS? This family member lives well below the poverty line and has 0 tax liability. I don't know how this is going to affect their taxes.

J

JulieS

You can claim the income on your tax return even though it is not in your name, but the IRS will still expect to see the income on the tax return of the family member.

You don't mention the specific type of investment income, but you may be able to use the nominee procedure to transfer some or all of the information from your family member to you. This is normally used for interest and dividends.

Click here to learn more.

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