1099 woes

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
NightFall
Posts: 267
Joined: Wed Mar 12, 2014 4:38 pm

1099 woes

Post by NightFall » Tue Feb 05, 2019 2:11 pm

So I recently received an incorrect 1099. I did work last year for a company. They sent me one check. After a month of waiting for the check, no check arrived. The company considered it lost and sent another check. I received that check and then, two days later, the original check. I deposited one, and the company asked me to mail the other check back, which I did. Fast forward and I received a 1099 for 2X the amount of the check.

This has never happened to me before, so I'm unsure what to do. I tried contacting the company and just got voicemails. Together, my spouse and I are in the 24% bracket but I also pay 15.3% tax on self-employed income. So that's about 40% marginal. But paid on 2X what I received, that's 80%! Any advice on how to proceed? Has a company every reported higher earnings to the IRS than you received before?

livesoft
Posts: 68608
Joined: Thu Mar 01, 2007 8:00 pm

Re: 1099 woes

Post by livesoft » Tue Feb 05, 2019 2:15 pm

This doesn't sound like much of problem to me. Just because you get to leave a voicemail does not mean you should not keep trying. Write a letter, send an e-mail, keep calling and get that 1099 corrected. I have received corrected 1099s, so I don't think this is a big deal. You don't have to file a tax return until October anyways, so what's the rush since it is early February right now.
Wiki This signature message sponsored by sscritic: Learn to fish.

Silk McCue
Posts: 3440
Joined: Thu Feb 25, 2016 7:11 pm

Re: 1099 woes

Post by Silk McCue » Tue Feb 05, 2019 2:16 pm

They are required to file a corrected 1099 and provide it to you and the IRS. You need to do what it takes to reach them and get them to fix the form. If you don't this it is likely to become a problem sooner than later.

Sorry for the trouble.

Cheers

User avatar
vitaflo
Posts: 1182
Joined: Sat Sep 03, 2011 3:02 pm

Re: 1099 woes

Post by vitaflo » Tue Feb 05, 2019 2:20 pm

Yes I've gotten incorrect 1099's before. Your first order of business is contacting the employer (which you have). I would keep at it. If that doesn't work, here are the instructions from the IRS on form 1099-Misc:
Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly.

Topic Author
NightFall
Posts: 267
Joined: Wed Mar 12, 2014 4:38 pm

Re: 1099 woes

Post by NightFall » Tue Feb 05, 2019 4:30 pm

vitaflo wrote:
Tue Feb 05, 2019 2:20 pm
Yes I've gotten incorrect 1099's before. Your first order of business is contacting the employer (which you have). I would keep at it. If that doesn't work, here are the instructions from the IRS on form 1099-Misc:
Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly.
Thank you for all of the replies. At least there's a backup plan if the company is going under and doesn't respond.

Post Reply