When tax time rears its extremely ugly head, your days may be filled with sorting and sifting through piles of receipts and forms. If you're an independent contractor or sole proprietor, your income is reported on Form 1099, which you should receive from any companies or individuals for which you performed work. You should receive your 1099 forms no later than Jan. 31 of the year after you completed work totaling $600 or more. An incorrect 1099 form may seem like a big hassle, but they are easily corrected. It's important to file a correct 1099 because the IRS receives a copy and compares it with your tax return.
Contact the company or individual that issued the 1099 form. Explain that your records are inconsistent with the income figure reported to the Internal Revenue Service.
Watch your mail for a revised Form 1099 that is marked "Corrected." Attach this form to your income tax return.
If you do not receive the correct 1099 form, enter the correct amount of income received, and attach a note explaining the discrepancy, according to the IRS.
- Jupiterimages/liquidlibrary/Getty Images
- What Is a Mill Levy?
- Tips to Sticking to a Budget in Your Twenties
- How to Estimate the Cost Basis on Non-Cash Charitable Deductions
- Can You Deduct Clothes Donations You Put in a Drop-Off Box?
- How to Find Tax Appraisals for a House
- What Are Three Primary Financial Requirements for Purchasing a Home?
- How Do I Get My House Reassesed for Taxes?
- What Can I Do if My 1099 Is Incorrect?
- How Can I Lower My Tax Bill With No Dependent?
- Can I Deduct Air Conditioning If It Is Medically Necessary?