How to Dispute Form 1099
Form 1099 is an alternative means for reporting income to the IRS other than wages, tips and salaries. Sometimes errors occur in the payroll or accounting office, and that income is misreported on the 1099 that you receive. Rather than living with this error, there are several ways to dispute an incorrect 1099 form with your employer and also the IRS. It is simply a matter of completing the appropriate process.
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Instructions
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Compare the amount listed on your 1099 with the income listed in your personal records or bank account.
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Contact your employer to notify them of the error and request a corrected 1099 form. You may need to speak with your boss, the accounting department or payroll. It helps if you have kept all of your payroll stubs or have bank statements showing all of the company's direct deposits into your bank account.
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Contact the IRS after February 15 of the current year to report the problem with your 1099. You can contact the IRS toll-free at 1-800-829-1040.
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Have your employer's name, complete address, employer identification number and telephone number and your own information, including Social Security number, on hand for the phone call. Also prepare an estimate of the wages earned, federal income tax withheld and the amount of time you were employed by this company.
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Ask that the IRS representative initiate a Form W-2 or 1099 complaint. The IRS will sent a letter to the employer requesting that they submit a corrected form to you within 10 days. You will be sent a letter with a Form 4852 and instructions for filling it out. If your employer doesn't send you a corrected form in time for you to fill out your taxes, you'll be able to use the Form 4852 instead.
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Fill out Form 4852 if you don't receive the corrected 1099 and submit with your tax return.
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Keep a copy of your complete tax return for your records.
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Tips & Warnings
If you receive an updated 1099 form after sending in your taxes and the listed income is different from your estimates, you'll need to submit an amended tax return with the corrected amount.
After September 30 of the current year you can contact your local Social Security Office to confirm the wages reported by your employer.
References
Resources
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