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How to Get a 1099-MISC Corrected


Tax Form
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In a perfect world, independent contractors, who receive 1099-MISC forms for nonemployee compensation (box 7), should receive correct 1099s by January 31. And yet we all know it's not a perfect world. So, as an independent contractor, what should you do if you don't receive a 1099 or you need a corrected 1099?

How to Get a Corrected 1099

As soon as you receive a 1099-MISC, check its accuracy. You don't want to discover you have an incorrect 1099 on April 14. If you do find a discrepancy between your records and the 1099, you must get this resolved before filing your taxes. The issuer of a 1099 files this form with the IRS, so any discrepancy between the amount on the 1099 and on your tax return can raise a red flag with the IRS.

Immediately contact the person to whom you send your invoices if you believe your 1099 is incorrect. Ask him or her to send you a corrected 1099. Sometimes it is this simple, but often it will take multiple phone calls to different departments. You may need to provide copies of your invoices or work records. Frankly, the issuer of a 1099 doesn't have nearly the motivation to straighten this out as you, the taxpayer, do.

Review the information below to be sure that you do, in fact, need a corrected 1099:

  • Who Should Receive a 1099-MISC
    First, you should know when your client is required to send you 1099-MISC. If you made less than $600 during the tax year from that client as an independent contractor, then it is not required. (However, you are still expected to report income even if you don't receive a 1099.)

    Also be clear that your status fits the definition of an independent contractor. If you have worked for a company as an employee and not an independent contractor, you should have received a W-2.

  • What Time Period a 1099 Covers
    The income should have been received in the tax year for which the 1099 is issued, so check the date of when you received payment. Take special care to record into which tax year (which runs January 1 to December 31) income that was received in early January or late December falls. Your memory may not always serve you correctly.

  • Other Situations Affecting Your 1099
    If the company issuing your 1099 was bought by another company during the tax year and you continued to work for the new owner, you could receive two 1099s for the year--one from the old owner and one from the new. And if one of these 1099s is late or missing, this could explain what appears a low amount of compensation from the other.

What If You Can't Get a 1099 Corrected by April 15?

Let's say you did open your 1099-MISC just before the filing deadline only to discover a mistake. File for an extension. But remember you still have to pay your taxes by the due date. But this will give you and your client time to get the 1099 corrected.

What If Your Client Disputes Your Records of Business Income?

As William Perez, About.com's Guide to Taxes, explains in the comments of this article, you can go ahead and report the income your records reflect, but you will get audited. He says, "If there’s a mismatch between the amount of income you report and the amount of income that the company reported to the IRS, then the IRS will audit your tax return. Simply provide the auditor with documentation for how you calculated your business income, and inform them that the 1099 was incorrect. Then the IRS may audit the company."

I am not a tax attorney, CPA or tax preparation specialist. The information here is meant as a general guide. For specific questions about your own taxes, please refer to IRS publications or consult a tax specialist.

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