SSA-1099 Alert

Somewhere I saw a complaint about an error on the Social Security Administration 1099 form for 2007. I've searched the current postings and see no reference here.

However, I personally received an SSA-1099 with a significant error. When I called and reported it, the agent acknowledged that there had been errors on a great many reports, and that corrections would be issued within the next couple of weeks.

This post warns all preparers that there may be an error, and if the TP has accurate records (including their notice of 2007 benefits), a cross check would be advisable. The error in my case involved too high a figure for Part D Prescription Benefits -- thus raising the possibility that a TP who itemizes might overstate their medical expense.

Please be advised that there may be a corrected SSA-1099 on the way, and verification would be recommended.

Bill

IRS sent the following message to its employees this morning:

Date: 01/18/2008

Social Security Benefits Misstated on 1099-SSA

The Social Security Administration has supplied the wrong tax information to about 2.7 million Americans. The incorrect data was contained on some

1099-SSA forms sent out earlier this month.

1099-SSAs are sent to people who receive Social Security benefits, reporting benefits they received during the year. Benefit information is needed to file income tax returns.

The incorrect forms over-reported the amount of benefits received by some Social Security beneficiaries who purchase Medicare Advantage or prescription drug plans under Social Security parts C and D. The incorrect information is in Box 3, Benefits Paid, of the form.

In some cases, Social Security computers preparing the 1099s included premiums for plans paid in 2006 as part of benefits received in 2007.

Corrected forms will be sent to all affected Social Security recipients, and to the IRS, by the end of the month.

Condor