I appreciate you posting your concern about your father-in-law's interest in issuing 1099 for the mistakenly transferred funds to his account, moores-paint. Allow me to elaborate on how you can handle this situation.
To begin with, your father-in-law doesn't need to issue a money order or 1099 since he did not receive an income from this transaction. You can provide relevant details to help him understand the situation better.
If your in-law already submitted a 1099 for your husband, you can contact the IRS to initiate corrections or disregard the form. This way, you can avoid potential tax implications.
You can also consider seeking advice from a tax professional to secure accurate income reporting and avoid potential penalties or fines. Doing so ensures your compliance with your state's tax regulations and policies.
To learn if you're mandated to file 1099 and other return forms, please review this link: Am I required to file a Form 1099 or other information return?
Finally, you may check out this resource to gather essential information regarding the 1099 form and filing in QuickBooks: Get answers to your 1099 questions.
I'll be on this thread once you have more questions about handling mistakenly transferred funds or managing your transactions and reports. Just reply to this thread, and rest assured, I've always got your back.
