What to Do If You're Missing a 1099 Tax Form

Every year at about this time, freelancers are inundated with Form 1099 so they can report their income to the IRS. But what if one you were expecting never arrives? Forbes' advice: Don't ask for one.

You should still report the amount you earned on your tax return (failing to do so will likely trigger an audit), but don't request a the form from the payer. The reason is the IRS gets a copy of each Form 1099 generated by payers; if you ask for the form, you could end up with two of them issued (the one that went missing and the one you requested), and the IRS computer could think you had twice that income.

Also, be patient and (obviously) keep good income records:

Don't be too anxious to file your return if you haven't received all your Forms 1099. Some Forms 1099 may come as late as March or April, despite the normal deadline (they are supposed to be mailed to you by January 31). I see clients fighting tax bills every year that probably could have avoided problems entirely by more careful reporting.

Don't you just love tax season?

Why IRS Form 1099 Is So Dangerous To Your Tax Bill | Forbes

Photo by reallyboring.

from Lifehacker http://ift.tt/1v5uhAw

Related Items