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
- How to Report a 1099 for a Deed in Lieu
- How to Find the Status of a WWII Bond
- How to Recover a Lost Tax Return
- How to Get a Judgment to Show Settled
- How to Sign an E-File If You Have Never Filed Taxes Before
- How to Calculate the Balance Owed on a Promissory Note
- How to Calculate the Return for a Mutual Fund
- How to Deduct a Mortgage From Taxes