Trijicon sent me a 1099 for a Tenmile scope I got free with rebate

[Mrvmax]

This is new one to me, I have never been given a 1099 for a rebate item before. I bought a Trijicon IR Hunter Thermal last year and it came with a free Tenmile scope via rebate. In this weeks mail I get a 1099 from Trijicon for $2132 (which I would say is way more than it is worth). I considered the Thermal and Tenmile scope to be as "one",meaning the value of the IR Hunter was lower since it came with a scope. I've never had a rebate for an item valued over $600 so I suppose this is why. I think Trijicon should have lowered the value of that scope, especially since some models have been discontinued.

 

[Rhovee]

Sig does the same thing. They need to be able to deduct the prize from net profit which a 1099 will do.

 

[Spooky1]

It is downright crappy to send a 1099 someone for a "free" item. Further, in my opinion it borders on tax fraud for Trijicon to declare on the 1099 that the value of the "free" is the full MSRP.
#1 - the 3-18 Ten Mile that I received "Free" can be purchased from Optics Planet for $1,132, not the $2,400 MSRP.
#2 - Trijicon's tax basis for the 3-18 Ten Mile is what Trijicon's cost to produce the scope - not the $2,400 MSRP.

If you deem appropriate, you can anonymously file a F3949a notifying the IRS of what you believe to be Trijicon's False Deduction by claiming full MSRP on the 1099 versus the $1,132 selling price and what is likely Trijicon's much lower cost basis for the free items given away.

https://apps.irs.gov/app/digital-mailroom/referrals/f3949a/

BIFF

 

[Dmagna]

This is new one to me, I have never been given a 1099 for a rebate item before. I bought a Trijicon IR Hunter Thermal last year and it came with a free Tenmile scope via rebate. In this weeks mail I get a 1099 from Trijicon for $2132 (which I would say is way more than it is worth). I considered the Thermal and Tenmile scope to be as "one",meaning the value of the IR Hunter was lower since it came with a scope. I've never had a rebate for an item valued over $600 so I suppose this is why. I think Trijicon should have lowered the value of that scope, especially since some models have been discontinued.

I think they have to use the msrp value. But that's crazy, I didn't know they did that.

 

[crashlanding]

Thank the government, they're the ones making businesses do this type of crap, time for a tea party

 

[26Reload]

Nothing is free

 

[HARPERC]

My understanding is the same happens with game show prizes.

Someone recently posted pay pal is reporting also.

Expanded, and weaponized IRS.

 

[JimFromTN]

It is downright crappy to send a 1099 someone for a "free" item. Further, in my opinion it borders on tax fraud for Trijicon to declare on the 1099 that the value of the "free" is the full MSRP.
#1 - the 3-18 Ten Mile that I received "Free" can be purchased from Optics Planet for $1,132, not the $2,400 MSRP.
#2 - Trijicon's tax basis for the 3-18 Ten Mile is what Trijicon's cost to produce the scope - not the $2,400 MSRP.

If you deem appropriate, you can anonymously file a F3949a notifying the IRS of what you believe to be Trijicon's False Deduction by claiming full MSRP on the 1099 versus the $1,132 selling price and what is likely Trijicon's much lower cost basis for the free items given away.

https://apps.irs.gov/app/digital-mailroom/referrals/f3949a/

BIFF

They have the retail price listed as $2345 on their website so I don't think there is much he can do. It does suck. He is probably going to pay $500 for a free scope. I don't buy raffle tickets for fear of winning.

 

[Laelkhunter]

What really sucks is the fact that got the 10-99 in February, possibly after you have done your taxes (we have already) without reporting it. Now you get the 1099, which means IRS is aware that you received said item for $2132 which was not reported. Now you look like you were trying to evade paying your tax on that item or you would have claimed it when you filed your taxes. Hopefully OP hasn't filed his 2023 taxes yet, and can include the 10-99.

 

[crashlanding]

You end up amending your taxes if you didn't report the 1099 which in turn means if the irs owes you money, it will take months before you get it but heaven help you if you owe money, you better get it in lickity split

 

[cohunt]

Gotta love "free" stuff--- have to report my daughter's college "scholarship" on my tax forms too

 

[Weaver93]

My understanding is the same happens with game show prizes.

Someone recently posted pay pal is reporting also.

Expanded, and weaponized IRS.

I get one on the stuff I sell through PP, that's why I try not to use.

What is the 2023 Form 1099-K IRS tax reporting threshold on PayPal?

The IRS has recently announced an additional delay in implementing the new $600 USD reporting threshold for goods and services transactions, reverting the 2023 requirement for Form 1099-K reporting back to the 2022 figures (total payments exceed $20,000 USD and there are more than 200 transactions). This means that similar to prior years, PayPal and Venmo will continue to follow these IRS reporting thresholds. Additionally, PayPal and Venmo will file Form 1099-K for any customer who was subject to backup withholding during 2023, regardless of total payments for the year. In the case where an individual state has a lower threshold, PayPal and Venmo will report accordingly.

If you live in the following US states, you're subject to a lower reporting threshold:

• Vermont, Massachusetts, Virginia, Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year, regardless of the number of transactions.
• Illinois: over $1,000 USD in gross payment volume from sales of goods or services in a single calendar year and four or more separate transactions.

The Form 1099-K that you receive is based on your primary address on the last day of the previous tax year. If you changed your primary address to one of these states after that date, your account activity would be captured in Form 1099-K reporting for the following tax year.