Keystone 1099s you for funds reimbursed?

[ChuckS]

I've seen similar post recently regarding customers getting 1099s from Keystone when they get reimbursed for money the customer spent for parts, repairs, etc...

The 1099 is saying "You Received INCOME" and it is taxable....

Really - Keystone would tax refund money on services an OP pays out of pocket?

This is a post showing an example of the issue and a question sent to Turbo Tax online help.. Turbo Tax Rep response is inline with exactly what I thought... the 1099 is saying Keystone PAID YOU INCOME and now its taxable...

The post:
Here is another example of the same thing from another OP:
1099-Misc for RV Warranty Work
I own a Fifth-wheel RV that I purchased new in 2017. In 2018 I complained to the manufacturer (Keystone RV) about the lengh of time the RV was undergoing warranty repair and also a repair that I had paid for out of pocket, that I felt should have been covered unter warranty. Keystone offered $2000 for "loss of use, time out of service, fees and out of pocket expenses". They also reimbursed me for the repair that I paid out of pocket ($918.86).
Keystone RV then sent me a 1099-Misc for $2918.86
This is not income... How do I handle this?

****** TAX REP RESPONSE:
This question was sent to Turbo Tax Online and here is Turbo Tax Rep Response which aligns with exactly how I understood this 1099… IT IS TAXABLE INCOME ON MONEY I would be on the phone telling them to send a corrected form with a zero on it. They gave you a form saying that it is income. Here is what the IRS says about 1099 income:
At least $600 in:
Rents.
Services performed by someone who is not your employee.
Prizes and awards.
Other income payments.
Medical and health care payments.
Crop insurance proceeds.
Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
Payments to an attorney.
Any fishing boat proceeds.
You are certainly not a contractor, this was not a bonus or a prize. They might be trying to say it is "other income payment".

There is a lawsuit that was similar to your situation. The guy had emails proving he asked for a corrected 1099-MISC and the IRS did allow the deduction.

If you can NOT get a corrected form, enter the 1099-MISC as income and then adjust your income as a negative amount of the same under "other income" and label it as erroneous receipt of 1099-MISC. Keep proof that you asked for a correction and records of the whole situation.

[ChuckS]

Cover letter from Keystone....Keystone RV and Dutchmen Manufacturing, a division of Keystone RV, is a part of Thor Industries, a publicly traded company. We are required to have a FED ID number on record documenting who all payments are made too. This is done through the submission of a W-9 form. Note: By providing this information, it does not automatically indicate that any payment you receive from Keystone would be subject to Income Tax, however, Keystone cannot provide you with any tax advice so we would recommend you discuss your specific situation with your tax professional to determine your tax liability, if any, as a result any payments from Keystone RV Company.
In order for us to process your reimbursement, please complete and return the attached W-9 …

I guess I have lived in a dark cave far too long… If it’s a 1099 and it shows a dollar amount then it’s taxable income unless you report it on your tax return as erroneous filled out 1099 or get a corrected 1099 showing zero dollars

[flybouy]

I wonder if it has anything to do with the Sarbanes Oxlet Act?

[ChuckS]

Yes I am aware of the SOX Act... This should not have a thing to do with getting a refund from ANY company...

JAYCO and others are also doing this nonsense.. They all send you a W9 form and you fill it out and then they send you your refund plus the 1099...

The Dollar Amount should be $0.0 and if it isn't then it can become Taxable Income by the IRS and State income tax...

Yet another reason why I am done with buying RVs...