maughact
Level 4

My client received an IRS bill for a 1099-NEC  from a mortgage company.  My client had a foreclosure and the payment reported on the 1099 was for a move out payment.   Would this type of payment be subject to self-employment tax?  I'm wondering if it's worth drafting a letter to IRS asking to wave that part of the tax?

Thanks

0 Cheers