What if a Company Does Not Report on a 1099?

A 1099-MISC form is sent to independent contractors or freelancers who work for a company, but are not technically employees of the company. A company is required by law to send a 1099-MISC (miscellaneous income) form to an independent contractor by January 31, as part of the person's tax preparation for the prior year. A company is not required to send a form to those who have made less than $600.

Significance

A 1099-MISC form is sent to the govenment, and important for the taxpayer to file, because federal and state taxes have not been deducted from the wages earned, along with medicare and social security taxes.

Contact Employer

If a 1099-MISC is not received by January 31, contact the employer. Perhaps it has been delayed in the mail delivery, there has been a mix-up, or the employer does not have your current address. If a 1099 is not received by February 15, call the Internal Revenue Service at 800-829-1040. You will be asked to provide your name, address, phone number, social security number, employer's name and phone number, dates of employment and estimate of wages earned in the past year.

File Return

Even if you don't get a 1099 form, you must still file your tax return by April 15, or file an extension. The missing wage information from the 1099-MISC may be obtained from your personal records. It is required by law to include the amount of wages earned in your tax return, even if you have not received a 1099 form from the employer.

Amendments

Often, a 1099 form may show up after you have filed your tax returns. In that case, if you find that you have received unreported income, report the income by filing an Amended U.S. Individual Income Tax Return 1040X. This form is available for download on the IRS website (IRS.gov).

Considerations

Ultimately, it is up to the taxpayer to all report income earned, even if a 1099-MISC form is never received (and even if the taxpayer makes less than $600 at a particular organization, which is then not obligated to send a 1099). The taxpayer is responsible for any penalties incurred because of unreported income, and if an audit is ever conducted, the tax payer will face penalties if it has been determined that earned income was not reported.

References

• Wise Geek
• IRS