/ / What To Do When You Wrongly Receive A 1099-NEC

What To Do When You Wrongly Receive A 1099-NEC

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This is a follow-up to my previous article about sending Form 1099-NEC when they aren’t required and how it can be costing you money and giving your partners unnecessary work. This is the flip-side for those of you who are the ones on the receiving end.

Also, for reference, a new old form is coming in 2020 called the 1099-NEC. For all intents and purposes, this is the form for paying independent contractors and freelancers going forward. The rules for the 1099-NEC are the same as for the 1099-MISC and the IRS still uses the “MISC” in many of its instructions.

One second you’re walking to the mailbox, not a care in the world.

The next second, you’re filled with dread.

You hold a letter from the IRS, your hand trembling.

Scared as you may be, you open it, hoping it’s not what you think.

Experienced freelancers will know some of this already.

If you are relatively new to freelancing, this may be totally new.

In either case, you’ll want to pay attention.

Why?

I can guarantee that if you haven’t personally, you know someone who has dealt with it.

And because I’m going to put your mind at ease about it.

So what is “it” already?

DOUBLE INCOME REPORTING.

And it can be a pain in the ass, not to mention scary as shit if you aren’t prepared.

Man and woman sitting on a couch with a laptop and tax return forms trying to figure out their freelancer income and expenses.

Tax Forms You Need To Know About

I like to be thorough and not take anyone’s level of knowledge for granted, so bear with me for a second while I explain this to anyone who isn’t very familiar with the concept.

Hell, you self-taught experts may surprise yourselves with how much you didn’t know so you may want to read this all the way through too!

As a business owner/contractor, you aren’t treated the same as an employee.

You don’t get a regular paycheck with taxes taken out.

You don’t get a neat little W-2 at the beginning of the year summarizing your earnings and tax withholding in a single, neat document.

Instead, you are responsible for calculating and paying your own estimated taxes, getting a form 1099-NEC instead (if you earn $600 or more from any single partner for the year and paid via cash, check, bank transfer, or money-sharing app).

This can be loosely described as the non-employee version of a W-2, except it only shows income (no tax info since you do that independently of the people you work for).

You probably don’t even get a check or direct deposit at all.

Most likely you accept credit cards in your business.

Or get paid via a 3rd party payment processor such as PayPal.

In that case, you may get a Form 1099-K.

This form is quite different than the other two which were mentioned earlier.

A 1099-K is a form that payment processors send out to people who reach certain minimums in terms of transaction volume and the total value of receipts (200 transactions and $20,000).

So that’s a basic overview of the differences between all of the tax forms which you need to know about.

How Double Income Reporting Occurs

This is where things appear to get complicated, even though they aren’t, and shouldn’t.

And it’s not your fault whatsoever!

Every employer is required to send a copy of the W-2 to the IRS to match up with their income tax return.

It’s how the IRS knows that people (for the most part) are reporting what they earned and can’t cheat (although they always find a way).

The same thing happens any time a business or individual pays a non-employee more than $600…they send in a 1099-NEC to the IRS.

And if you qualify for a 1099-K–having in excess of 200 transactions AND more than $20k in gross billings running through a third-party payment processor like PayPal, Stripe, etc–a copy of that also goes to the IRS on your behalf.

But…wait just a second.

If you get both a 1099-NEC and a 1099-K, doesn’t that mean much more money is being reported than is actually being earned?

Ding ding ding ding!

That’s where you’re getting screwed over in a sense.

And why is that?

Here are the reasons for that:

Text passage copied directly from page 2 of the 1099-MISC Instructions under the heading "Exemptions"
This is an excerpt from the 1099-NEC Instructions.

This pretty much means that if a business pays a contractor via non-cash methods, they DO NOT file a 1099-NEC for those people.

It doesn’t say “Well, you can do it on either and if you’ve been filing 1099-NEC forms all along then you don’t have to stop now”.

It says plain and clear “NOT SUBJECT TO REPORTING” which means DON’T DO IT.

Heck, if you go and look at the other side of the equations, this is what the 1099-K instructions say:

Section from IRS 1099-K instructions telling you how to report money that can be reported on 1099-MISC

Again, any payments by a payment settlement entity (ie: PayPal) do not get reported on a Form 1099-NEC.

But, for one reason or another, many companies, their (hack) accountants, or the companies they use to run payroll (since this is really a payroll issue at heart) don’t care.

In the end, what can, and usually does, happen is the IRS cannot match your reported income with the figures reported on your behalf because of this double income reporting.

The part that makes this suck more is that the IRS generally is 2 years behind on doing its matching thing.

So, in essence, you may have to wait around for up to 24+ months to find out if you will even be receiving that dreaded envelope with the IRS logo on it.

What To Do When You Get An IRS Notice

Now this is where you are going to change your tune about the IRS (Maybe. Possibly. Probably not.)

When you get a notice stating that the income you reported on your tax return doesn’t match the records the IRS received under your tax id number do not panic!

This is an automated notice which is just stating facts, nothing more.

It isn’t an indictment.

It isn’t a levy.

It’s not even a threat.

No one’s coming knocking at your door and no one is sending you to collections or even jail. (You need to start learning how to be more discerning about what you believe on the internet!)

It’s basically a notification of the difference and a chance for you to explain what may have happened to cause this discrepancy.

There is nothing to worry about!

What you need to do is keep a level head so you can deal with the issue quickly and efficiently.

How do you do that?

Follow these simple steps:

  • Gather your info
    It’s important to have your shit together before taking any action. You want to be able to see exactly what caused the issue, and that means having all of your 1099-NEC forms handy so you can match one or more to the difference the IRS is looking for. It’s something you can do on your own with a little work.
  • Contact the IRS before the deadline
    This will turn off the “follow-up notifications” where the threats and warnings start coming into play. All you need to do is call the number provided on the notice and say “I’m calling in response to the notice I received about my income not matching. What had happened was I was paid via a third-party payment service/merchant processing company and the company(ies) that paid me issued a 1099-NEC even though it wasn’t supposed to be filed. That is why my income looks to be lower on my tax return than what you have on file for me.”
  • Write everything down
    It’s important to make sure you have a record of everyone you spoke to and when. I don’t care if you have to write it on the palm of your hand, but every time you speak to someone about anything regarding this situation make a note of it. Write down the IRS agent’s name and ID number. Notate the date and time of the call. Do the same for anyone you speak to at the company you are dealing with or their accountant/payroll processor. Being able to point to facts will help your case more than you can anticipate.
  • Do what the agent tells you
    There are two things that can happen next. One is the agent will ask you about the specific 1099-NEC forms that were erroneously issued. If that/those do indeed equal the difference, then they may close it out right then and there. The other thing that may happen is you may be told to contact the company(ies) and request that file an amended 1099-NEC for you.
  • Call the IRS back if you don’t get a resolution
    Sometimes, companies don’t want to spend the time and/or money fixing a problem they themselves have created unless it’s widespread or there is pressure coming from “above” to do so. If you were told to try and get an amended 1099-NEC done on your behalf and the company refused, you can get help from the IRS. You can call the same number from the notice, although it’s difficult to get to the same agent easily. Most of the time, there aren’t dedicated agents unless the situation is more serious so you may have to do a little explaining again, although there should be notes on your account for the new agent to get caught up with. Tell them that you tried to resolve the situation, giving them all of the information you wrote down during all of your interactions.

The IRS is only interested in factual numbers.

If you can show that your numbers are the factual ones, then it shouldn’t be very hard to get things like this squared away more easily.

Just don’t freak out at the slightest sign of trouble or even the words Internal Revenue Service.

Two things will help you through this:

  1. Keeping your wits, and
  2. Following directions

If you approach this thing from a calm and logical place, you’ll make it through quicker and less stressed than if you didn’t!

Avoid Double Income Reporting From The Start

There is something that you can do to try to avoid this ordeal right away.

Rather than waiting to see if you’ll be put in this situation, you can be proactive.

Reach out to the companies you work with.

More specifically, find out who the person in charge of each company’s payroll department is–that’s the department that issues the 1099-NEC–or the person in charge if there isn’t a payroll department.

Let them know that since you are getting paid via PayPal (or via your merchant account) they DO NOT BELONG FILING A 1099-NEC on your behalf.

If they say that “we have to” for any reason, refer them to my article about when a 1099-NEC should be issued.

Then, offer to give them my information so they can get in touch with me and I’ll tell them exactly what they “have to do” and “don’t belong” doing.

If all else fails, you can always contact the IRS and file a complaint against any business which refuses to abide by the rules and purposefully goes against what the instructions clearly state.

Trust me, if they’re doing it to you, they’re doing it to plenty of others and they deserve to be reprimanded and fined for willfully screwing with you!

It sucks to be put in a situation like this.

I’ve already heard from several people who have and the good thing is, at least a few businesses have been willing to “consider” changing the way they operate in terms of issuing 1099-NEC forms to freelancers when they shouldn’t be doing so.

All you can do is report what you know to be accurate information and only pay your fair share.

Then let everything else unfold as it will and deal with it when it comes up.

At least you’ll be prepared in the event you do get that dreaded IRS notice!

1099-NEC and Identity Theft

Sometimes the 1099-NEC you receive isn’t incorrect due to the method of payment or the form of business you operate.

There is another instance that comes up quite often.

Tax fraud and identity theft.

It’s really easy to do, too.

All it takes is getting someone’s name and address.

An identity thief will create a fake 1099-NEC with a real company’s name and address, but with a false email or phone number in the sender section.

Then they mail it out to unsuspecting taxpayers who freak out when they receive it.

The taxpayer then calls the number gives their full information to “verify” that it’s them, then…

BOOM!

You’ve just become a victim of identity theft.

One way of protecting yourself from this form of identity theft is to check the info on the form.

Is your social security number correct?

Is your legal name in the payee field or a “nickname” that the identity thief would have not knows isn’t what belongs on there?

Verify the email and the phone number that is listed in the sender section against public records or on the “company” website directly.

Also, be sure to read through my article on identity theft protection to be aware of other kinds of scams and schemes; I also cover many ways to keep your information secure.

Your Turn

Have you ever received a 1099-NEC when it wasn’t supposed to be sent to you? How did you react? What did you do to resolve the problem? Share your experiences so others know that it’s not just them and to give them hope that it can be rectified 🙂

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Jean Culbertson
Jean Culbertson
3 years ago

I received received 1099’a for 2012-2015 that was filed against me from my ex-fiance who we were in business together and never made any money from. I’m assuming he’s making up for fraudulent deductions he made when we were together and now putting them on me, as income he paid me… which he never did. What do I do? He has already filed these with the IRS, and of course I never filed for this money he is saying I was paid.

Susan
Susan
3 years ago

Thank you for all the information. I’ve learned a lot from reading your articles.

I get nervous when client asks me to fill out W-9 forms… I want to prevent the headaches of explaining to the IRS.

Is there a way to report (either or both the preparer and issuer of) 1099-MISC that shouldn’t have been prepared / issued?

Bianca Hernandez
Bianca Hernandez
3 years ago

I received a 1099-k for 738. Should I be filing as business income and can I claim expenses against it. If so about how much expense can I claim. Or can I just not file the 1099-k?

Kristin Priemer
Kristin Priemer
3 years ago

My husband worked for a barber shop last year and was issued a 1099-misc. He took credit card sales through his own business account and therefore received a 1099-k for the credit card sales. The barber shop reported the credit card amounts plus the cash amounts on the 1099-misc hence the double income issue. So if I’m reading this right…do we file both 1099 forms but subtract the 1099k amount from the 1099-misc and enter the difference for the 1099-misc instead of the full amount?

Anonymous
Anonymous
3 years ago

My daughter received a 1099 form stating that she made $9,000 last year. The problem is that she never worked for the employer that sent her the 1099. What should she do?

Ashley
Ashley
2 years ago
Reply to  Eric J. Nisall

I just received a 1099-Misc I called the company asking what this was regarding and why was I receiving this form. When someone answered the phone they answered in Korean and they took my name and phone number and told me they would look into it and call me back. No one has called back. Isn’t Recipient’s TIN supposed to be your SSN? If so, this form did not have my correct information. How do I find out if this is a scam? What should I do?

Jeff
Jeff
3 years ago

My girlfriend received a letter from IRS, stating that her 2016 tax return doesn’t match the information on file. In the letter it states that Ebay distributed 1099-K of $228,563 and reported that amount to the IRS. However, I didn’t know until now that she gave her name, social security to her ex-boss to set up the ebay account. I filed the tax return for her, and of course it was $0 on schedule C. I consulted an CPA and he said the easiest way to fix this is to amend 1040X with schedule C. He said to offset the income with form 1099-misc paid to her ex-boss’s company. Is this doable?

David
David
3 years ago

So..I might be a bit late in this discussion but it would greatly help me if you can answer this question. I recently got a job not too long ago and filled out a W2. Now, for some off reason, my boss has been telling me that for the last 3 months, there was an “error” and unfortunately my info wasn’t properly logged into their system. He has paid me with a company check and has been doing so for the past 3 months. I am a bit concerned that they might report me on a 1099 at the end of the year and I’m quite clueless when it comes to this matters. He never mentioned anything in regards to being reported in a 1099, all he said was “I’m sorry, we were unable to log you in the system so we will pay you with a check”. Is this legal first of all? we never signed a contract and all conversations were verbal. Could someone help me?

Claudia
Claudia
2 years ago

my grandfather recently passed away on Sept of 2018 he had a floor covering company and was working as a contractor for a construction company, when he retired back in 2014 he passed his company to my uncle his oldest son who has been paying taxes for the company ever since. my grandmother just recently received a notice of outstanding debt to the IRS for 500,000.00 for taxes unpaid for the years 2015,2016 and 2017. upon contacting the IRS they tell her this major construction company send them a 1099-misc for the years mentioned listing her (a 78 yr old woman) as a contractor with their company. My grandmother has not worked since she married my grandfather back in the late 80s. we compared the amounts this company says they paid her with the amount my uncle received from them(my uncle who actually does work for them) and the amount are completely the same for those 3 years. We have gone to speak to the accountant that send these form to the IRS and she denies ever sending those 1099s , we asked her to give my grandmother a letter that states she never worked for them but they say they can’t with no explanation why. We asked the accountant to give her a corrected 1099-misc for the years 15-16-17 with amount of 0 so we can go to the IRS office but she still declined. My uncle did received his 1099s for those year and he already paid taxes for them. This to me smells of fraud and evasion of taxes by this company. how can we resolve this matter. please help!

Matt
Matt
2 years ago

What about venmo? They don’t issue 1099-k to people and they don’t report to the IRS. So then venmo payments issue 1099-misc but not PayPal? Can you see how unclear this is?

Nancy Szwyd
Nancy Szwyd
2 years ago

I received a 1099-misc from Google. They are impossible to get a hold of, as is the holding company Adsense which generated the 1099. I have never done any business with Google (ie I do not have a pay pal account, do not advertise with google ,nor do I do surveys for pay). The IRS is just as hard to get hold of. The 1099 has my last 4 of my social and an account # that is supposed to be mine. If I can not get hold of the holding company (the # they have says it offers no support) what else can I do. I have tried e-mailing them and have been told to go to their help page and log in using my account #. Since I have no account with them it will not allow me to log in using the account # on the 1099! Feeling frustrated!

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Eric J. Nisall

Thanks for the help. The e mail for adsense came back as a failure. H and R block (they do our taxes) said it is probably a hoax since the 1099 only has the last 4 of my social instead of the whole #. They are going to include a memo to the IRS when we file this year. Again thanks for the help!

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Eric J. Nisall

They suggested that I send a copy of the 1099 back to the holding company with a letter stating that I had no income from them, and hope for a reply explaining why I received it. I will send it certified, signature required. They also looked up the payer’s federal ID number and it is from Google in countries other than the US. That I found really odd. The federal id # is 82-2182297 if you want to Google it…I hope I get a reply because now it has me really curious!

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Eric J. Nisall

Thank you so much! I filled out the form as well as sending them a letter. You are a very helpful resource!

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Nancy Szwyd

I received an ammended 1099 thanks to the info you provided…all fixed

Kathy
Kathy
2 years ago
Reply to  Nancy Szwyd

I received the same thing in the mail today. Never worked for or with Google on any business. Not able to contact the company in any way,

Kathy
Kathy
2 years ago
Reply to  Eric J. Nisall

Nope. I’m guessing some kind of fraud with someone using my name, address and SSN?

Kathy
Kathy
2 years ago
Reply to  Eric J. Nisall

Thank you. I have filled out the form to have it voided.

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Kathy

Kathy, I was wondering if anyone else had this happen!

Pete
Pete
2 years ago
Reply to  Nancy Szwyd

In regards to Kathy and Nancy’s situation I had the exact same thing except mine is PayPal. All 2018 I’ve been dealing with identity theft and someone opening prepaid credit cards along with attempting opening a line of credit with PayPal. I was able to quickly get it shut down but since the Equifax breach I’ve been a victim of ID theft and now when I thought things were quieting down after freezing all my credit I get this 1099-K form for PayPal for over 8k of what I can only guess is some type of credit card or eBay sales. I DO NOT SELL ON EBAY AT ALL! So it amazes me this was so easy for them to do. It sounds so similar to their situation and is most definitely part of the ID theft so now what do we do to end this nightmare? I want to sue Equifax but a lawyer I consulted wants $200 an hour. I cannot afford this. Can Nancy, Kathy, and I join forces and get a lawyer or what because I have a feeling they are victims of Equifax breach too!!!

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Pete

Hi Pete. I have had my credit checked by H and R Block ( we have used the same accountant there for 15 years, both for personal and business taxes), and we can find no accounts open that are fraudulent. We also can find no record of why I got this 1099!. We sent a certified/ signature required letter to the holding company that issued the 1099 misc. We also contacted Adsense through the link that Eric provided above. They have responded and are looking into it as well. Unfortunately there is no phone number that actually gets you to the company for support! I am curious how I received the 1099 at my home address, but never received any payment also. For now we are holding off on filing for last year until we figure this one out! My three credit reports show nothing being opened in my name for Google or Adsense, so I am hoping mine is just a mistake.

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Eric J. Nisall

Good advice. Credit Karma had all three of the phone numbers and web pages for all three companies. Again thanks for all of your help. I will let you know if/when we figure this out!

Nancy Szwyd
Nancy Szwyd
2 years ago
Reply to  Eric J. Nisall

We checked all the hard and soft inquiries…nothing fishy there in the past at all. I will freeze my credit as well and hope Adsense gets to the bottom of this. They did say that the federal id # on the 1099 is an Adsense/ Google # but they have yet to find my account number that is on the 1099. Again thanks for all the very helpful advice! I am so glad I found your site!!!

imad
imad
2 years ago

I received a 1099-misc with a total income that is $40000 more than I was paid. I was told to issue a 1099-misc back to the company for the $40000 amount as a business expense.

That didn’t sound right to me. So, I requested a correct 1099-misc that equal the amount of my direct deposits from that company. The 1099-misc must match the checks received right?

imad
imad
2 years ago
Reply to  Eric J. Nisall

Thanks.

Kayla
Kayla
2 years ago

Hi, I received a 1099Misc form from my employer. He asked me to go on side jobs to Leidl to make extra money and 2 days ago told me I now owe the irs money. But on the form its the same address as my work place and he listed me as a nonemployee but I am his employee. Plus he added the lump some of money in with my regular check. I don’t know what to do.

Laura Massaro
Laura Massaro
2 years ago

I have great credit, no mortgage, paid off credit cards but just recieved a fraudulent 1099 from Bayview Loan Servicing, LLC, 4425 Ponce De Leon Blvd, 5th Floor, Coral Gables Fl 33146 for $4950.00. Looking online, they are scammers but what do I do? Call them? They have the last 4 of my social listed on the 1099. How do I handle please?

Jason D Smith
Jason D Smith
2 years ago

Eric, I did some work for a company in 2018, but have only been paid for half of what was agreed. I think they intend to pay me soon for the balance. Should they be sending me a 1099 for only the amount that paid in 2018, or the full amount? What is the rule here? Many thanks.

John bradley
John bradley
2 years ago

Hi and thanks for your work I send a message probably two months ago don’t see a response on here but I don’t check my email much 11 months ago in April my boss who owned the company sold it for millions of dollars the new company laid me off and he no longer was employed there also but he said he would give me $50,000 as a gift to help me out if he sold the company wrote a piece of paper with that on it after the closing about two weeks later open a separate account and had some temporary checks and wrote me a check for $50,000 and and I went on unemployment I’m trying to find a new job no just received a 1099 from him in the name of his company he made from his home address which is just where he has money JP Holdings 1099 miscellaneous box number 7 non-employee $50,000 I already did my taxes 2 weeks ago and knew I didn’t have to claim a gift as income what should I do now do I have to pay taxes because I received a 1099 that I believe was fraudulent

John bradley
John bradley
2 years ago
Reply to  Eric J. Nisall

Unfortunately an attorney cost $1,000 an hour I’m not sure how he got my social security number and address to send me the 1099 when he could have just filed the 709 gift tax form but I called his tax guy and he told me he claimed the money for a write off not sure if I should call the IRS and explain it to him I already did my taxes but I don’t want to wait around for them to call me and then have to pay a bunch of penalties basically his word against mine I went to the bank and got a copy of the check nothing in the memo margin and he lied and said that I gave him the address of where I live in my social security number when he gave me the check which he never asked me and I never gave it to him so he probably went to the company records and got it somehow he has Mayan $2 and I am just now starting a new job anything else you can suggest or should I just call the IRS I tell them what’s going on not sure if they’ve even received the 1099 yet

Lizzy
Lizzy
2 years ago

Hello Eric
My husband received 1099 misc from his former employee, for an amount less than $3000. He also received W2, right now he’s confused cos he was never paid without been taxed while he was working with his former employer, and no other allowances were paid that should require a 1099 misc. He contacted his former employer and the employer sounded , and said he’ll get back to him, but we haven’t heard from him. It must have been an error. Pls what should he do. Cos i don’t want my husband to pay for what he didn’t earn in the first place.

mnh
mnh
2 years ago

Let’s say my employer who i worked with report my income in 1099 form incorrectly. So instead of 3000, i received a 1099 form from him stated that my income is 5000. I called and I know he not gonna change it due to issue arise between us when we work together. So what i need to do now? Thanks

Brandy
Brandy
2 years ago

Hi. My husband has worked for his grandparents oilfield co since 1998. They allow payday advances that are withheld from the paycheck at whatever amount is reasonable. In 2012 his gma switched accountant’s. That was the first time we received a 1099. We were confused because we did not knoww what that was and at that time in our life my husband’s family was hard to communicate with so we were never able to get an answer from them so a friend referred us to her tax people they were supposed to be experts. It was day before final tax day because we had been trying to get an answer from family so we waited until the last minute. Picked up returns the following day and were told we owed a little over 2 grand to feds and about 1,000 to state because of 1099. We have gotten one every year since and every year it’s a fight as to why. In 2014 out of the blue the state started garnishing my checks stating we owed gross receipts from 2012. After penalties and fines and what they calculated we owed in taxes it came to over 6,000 they said we owed. My husband’s 19 yr old baby brother had died just a few months earlier and we were in no position to fight we just said ok. From 2013 to now we have used a different accountant and she files the 1099’s and we owe but never in the thousands and the IRS hasn’t had issue with any. So I feel the people in 2012 filed our stuff incorrectly resulting in all this mess. I am on short term disability which means they can’t garnish my paycheck at the moment so Friday the IRS cleaned out our bank account and savings. Then we received a notice from the feds stating we owe a lot of money to them because of that 1099 from 2012. This yr we did not get one. The issue ended up being that the accountant would withhold the advance along with taxes for the advance but then was issuing us a 1099 every year for the cash advances. Sorry lots of details. What can we do?

Mike
Mike
2 years ago

I received a 1099 misc for 4430.00 they only paid me 500. They never made the final payment for work. I called them and gave the check number an amount. I still have the open invoice for not being paid. They won’t send out another 1099 and pretty much said it’s my problem. They did say they see the CK number for the 500 than said their department says it was paid. I asked for email of final check an payment and they said they don’t have it. What should I do?

Dan
Dan
2 years ago

So here is my situation…I applied for a grant (on behalf of my 82 year old mother in law) to assist her with her mobile home skirting. SHE was awarded the grant $1000 and all went towards the purchase of materials. I guess since I filed for hte grant I received a 1099-misc for $1000. As stated; the entire amount went towards materials I received nothing for my labor. What can I do? Thanks

Crystal
Crystal
2 years ago

Hello, My daughter received a 1099t form from her grandmother showing she paid her $5000.00, which was not true. My daughter needed to borrow $1000.00 her grandmother told her that she could come work for her to pay the money back. Well to make a long story short after my daughter work for her grandmother for 2 months without pay, on the third month my daughter grandmother started to pay her in cash, my daughter only work for her for a total of 4 months, two months was without pay and the other two months was with pay. How can you give my daughter a 1099t from showing she paid her $5000.00 when she never paid her that much money?

Dawn
Dawn
2 years ago

Hello!
My husband was hired to do a commercial photo shoot for a large (national) company in late 2018. The original shoot date was cancelled and rescheduled for a new date in 2019. No payment for the job was made. We just received a 1099 for the original bid amount, even though we never received payment. The company had issued a check for payment and whomever was supposed to send it instead held it and then had it voided in January. Now the company is telling us this is our problem to work out with a CPA because the check was “in transit” in 2018 and therefore the $ was allotted to us so they have to claim it. The check was never “in transit” – it never left their offices. What are we supposed to do? My husband didn’t do the job, he wasn’t paid for it, but somehow it’s our problem that they filed a 1099 on us?

Ashley
Ashley
2 years ago

My husband is an employee and receives royalties for each game sold in addition to his base compensation. He received a W2 AND a 1099-MISC but this doesn’t seem right – shouldn’t the payout be viewed as an employee bonus and not 1099-MISC royalties? None of this was completed as a contractor or in any manner of self-employment.

Amber Whitehead
Amber Whitehead
2 years ago

I work for a firm. I received a 1099 for cases I handled. My employer actually gets the checks and pays me a salary. My employer claims all of the 1099 income (mine and hers) on her business taxes. The IRS comes back to me saying the numbers aren’t matching even though I attach a nominee statement. I’m not sure how else to file it and no one at H&R help line could tell me what to do. I sent a statement to the IRS explaining how my employer actually claimed and paid the taxes and received a letter back just saying they received my response and were looking into it. I don’t know what else to do and am terrified of course.

Helen Mendez
Helen Mendez
2 years ago

Received a w2 and a 1099 from same employer

Shelly
Shelly
2 years ago

Question, I received a 1099 MISC for a $600, non-employee compensation, from an elementary education foundation when I volunteered to produce their spring musical my daughter was in. The $600 was a stipend for the many hours spent producing the Musical.

I’m trying to submit my taxes however the Foundations Tax ID has too many numbers in it and I don’t have a number to contact anyone there. Also, to top it off, my SS# is not on the 1099 MISC, I wasn’t asked to fill out a W9 (I think it’s called). What do I do?? I don’t want to be penalized later but this is holding up me submitting for my refund??

Thoughts/Suggestions??

Cameron
Cameron
2 years ago

I have been working for a company for 13 years with a courtesy title of COO, I receive a 1099 because the owner does not want to pay taxes. What are my rights?

Lindsay Taylor
Lindsay Taylor
2 years ago

My husband received a 1099-R from a retirement plan with an old employer back in January. We never received or requested a distribution. Our address had also been changed to MA from MD and that is where the distribution was sent. Obviously fraudulent. Because of this we had to extend our tax return because I wasn’t sure what to do with the 1099. I didn’t want to report income I never received. Also, since it is saying the state tax was withheld in MA, I don’t want to have to file a MA state return. We live in MD. The 401k administrator, Principal Life Insurance Co., has been less than helpful in the situation. We have been waiting for weeks for the investigation to be completed. As of yesterday they were attempting to get the money back from the bank where the fraudulent checks were cashed. That can take another 6 weeks they said. I asked if they were going to issue a corrected 1099 and they said no and that the 1099s are issued in the year the money is withdrawn from the account. They have to issue a corrected 1099 for 2018, right? Even if it just to correct the state in which the tax was withheld? This cannot be the first time this has happened and I am very unhappy with the amount of information I have been able to get from the plan administrator. Any insight you could provide would be greatly appreciated!

Thanks in advance!

jim
jim
2 years ago

I received a 1099 from the attorney who represented me in the wrongful death of my son. The award was split between my son’s mother and myself (divorced from each other). the tax preparer informed me that the compensation from the insurance company is not taxable income. We included the income on the 1099 but then adjusted it on the schedule one line 21 to subtract it right back out. I received a notice from the IRS stating that they disallowed the write in on line 21 of schedule 1 (2018 1040). I have all of my supporting documentation that shows the funds we compensation form the law suite. The case was settled in mediation. The two checks issued to my attorney in my trust. After he took his fee and expenses he sent me a check for the remainder. So the question is this taxable and how do I rectify it if my supporting documentation does not meet the IRS burden of proof threshold. I am mailing response off today, very long wait time by phone.

Shauna rice
Shauna rice
1 year ago

My Ex sent me a 1099 suposely for a car that he bought me when we were togather 2 yrs after he bought it. He Is mad because I left him. I worked for that company for 6 yrs and he sold my vehichle through the Auction which he owned. That’s why he replaced my car. Is this legal. 15,000

Jake
Jake
1 year ago

I received a 1099-Misc from Geico (Car insurance company) but I haven’t received any money or anything from them, no claims or wrecks or anything while using that car insurance.. why would they send me one for over $900? Also we received this a couple weeks after already filing our taxes for this year.. what does all this mean for me?

Lisa
Lisa
1 year ago

Hi! I drive for a ride share company and have done so for several years. In previous years I received a 1099 MISC (reporting incentives, loyalty and other miscellaneous payments) in Box 7, a 1099 K (reporting gross payments). The amount on the 1099 MISC was a few thousand dollars – the amount on the 1099 K was over $20,000. The “filer is a PSE” and “third party network” boxes are checked on the 1099 K this year and last year.

This year the amounts on the 1099 MISC and 1099 K I received in the mail match. Has something changed? I am 99.9% sure this is incorrect. Strangely, when I view the forms on line the amount on the 1099 MISC is different than the one I received in the mail. I have tried to reach out to the ride share company but their support is notoriously horrible and they don’t even seem to understand what I am talking about. How should I handle this? Can the IRS tell me what was reported to them? Any guidance you can provide is greatly appreciated.

Lisa
Lisa
1 year ago
Reply to  Lisa

UPDATE: I have been on the phone with the rideshare company most of the day and they are trying to tell me that the 1099s are NOT provided to the IRS. I know this is wrong.

Lisa
Lisa
1 year ago
Reply to  Eric J. Nisall

Thanks Eric! I tried to call the IRS today but hold times were horrible!Unfortunately, there is no support section with any usable information on the website. I’ll try the IRS again tomorrow. Thanks again for your help.

GARY
GARY
1 year ago

In 2018 I sold my sole proprietorship business. I am receiving 1099’s for 2019 from customers of the business I sold in 2018. We provided customers in 2018 new forms W-9 of the new owners info. What should I do?

lizzie
lizzie
1 year ago

Hi, I just received a 1099-MISC from uber saying I made $909.50 from them last year. Not only do I not drive for uber, I am permanently disabled and cannot even drive! I’m afraid this could mess with my disability benefits. I’ve tried to call uber but they only let you talk to anyone if you need help as a driver or a passenger. not sure what I should do.

lizzie
lizzie
1 year ago
Reply to  Eric J. Nisall

Thank you for the response Eric! my social was not correct, something I noticed after I posted my issue on here. spoke with the driver side folks at uber and thankfully all is well and I don’t have to worry about the irs thinking I made this money and didn’t report it. I really appreciate you taking the time to help me & wish you all the best!

Tori Gouge
Tori Gouge
1 year ago

I just received an email from a company saying I need to fill out an 1099-MISC. I never received any actual money from them, just online credit (which did exceed $600, but it was all online credit for their website). And I hadn’t heard about it before today, even though I believe the deadline for 1099-Misc is 01/31. I was wondering if this is something I should be getting a 1099-Misc for? I’ve never worked for the company before, and never done a 1099 before so I’m unsure how this works.

Anonymous
Anonymous
1 year ago

The company I work for receives 1099 MISC every year and most of them are not ours, they do not list our tax ID and company name. Should I return these to sender or what should I do?

John J
John J
1 year ago

I just received a 1099 from a company that I did NOT do over $600 worth of work for, they are claiming I did. Because I knew we wouldn’t do over $600 worth of work I never filled out a W-9, and they never asked. I go by my middle name for anything that doesn’t require my legal name “like bank accounts and taxes”, so all they had was my middle name. So they got on facebook or something and found my last name, then I’m guessing googled it and found a address I lived at 4 years ago. Because I know the person who lives there now they dropped it off to me. And they put my social as 999-99-999. So they do not have my legal name, the current address that I have been filing taxes from for the last 4 years, or my social. First question, whats stopping me from throwing this away? Literally if I didn’t know the person living at my old house I would of never gotten this. And without any matching information how would the IRS tie this back to me? Second question, they paid me $500 via check. They are claiming they paid me $1,000. I only did one job, for $500. What do I do?

DonnaKay Shipyor
DonnaKay Shipyor
1 year ago

Hello, I received a 1099-Misc from a company who processed payments like PayPal? I did not work for them, however they lumped all payments that were made to me through their website? I did not exceed the $600 for “any” of these companies I worked for. I request a correction and they said NO! I inquired at IRS and they indicated a 1099k if applicable. I do not even meet that criteria?

DonnaKay Shipyor
DonnaKay Shipyor
1 year ago
Reply to  Eric J. Nisall

That is correct. I did work for a company off the web and was paid direct deposit through a portal like PayPal and they sent a 1099 misc. I told them that I did not meet federal requirements of $600 or exceed 20 payments or over $20,000 for a 1099k but they refuse to correct it? I called the IRS to confirm and was told to file a complaint. I did not want to go that route but I do not believe I will have a choice, I already filed my taxes. 🙁

Leslie
Leslie
1 year ago

My husband received a 1099 k from Stripe over 3200.00 he’s been a fraud victim in the past and apparently someone is using his Social and name again. This time they are using Stripe to sell digital goods. Stripe has been notified and they are looking into it but they have sent 1099k into IRS so what do we do?

Monica
Monica
1 year ago
Reply to  Leslie

I’m dealing with Stripe too. Good luck.

Monica jones
Monica jones
1 year ago

I need help. I received a 1099k from a company named Stripe.inc there is no phone number for the company, just an email address in the company’s address and they only take outbound calls no inbound calls. when I spoke to someone named Vicky she refused to give me any information on the account number that was on the 1099 the date the company was supposedly started up under my namefor information on this and it just showed two months of transactions from a third-party Network totaling $32,000. Being that I have the account number on this supposed 1099-k they won’t give me any information on when this company was opened or whatsoever and I’ve already filed my taxes. What do I do. There is no way to contact a manager of stripe Inc.

Monica
Monica
1 year ago
Reply to  Eric J. Nisall

The only information on there is my name and address. The part for my social looks like this ***-**1234 and it only shows the last 4 of my social. When a spoke with Vikki from stripe, she was no help, all she told me was to contact my local police department and the FTC to file a report and then they would look into the matter. I don’t know what else to do and I already filled my taxes. I even asked Vikki went hasn’t stripe sent out monthly statements and I guess that question caught her off guard because she had no answer. Then when I asked for information on the account since it’s on the 1099k form, she refused to give me any information.

Harley Hiza
Harley Hiza
1 year ago

Hi Eric,

I received a 1099 from a Reliance Trust Company in Atlanta of which I’ve never heard. Seems like a Ghost company because you can’t get a hold of anyone on the phone, it’s just a automated loop of extensions with no one on the other end so it appears to be a variation of identity theft. My name and last four (the only exposed digits) of my social are correct as well as my previous address from which I just moved. How do I make sure the “contributed” amount and taxes get nullified?

Yanti
Yanti
1 year ago

I have a S corporate construction company and received a 1099 MISC from a client. I have informed their accountant our S corporation status with an updated W9, I also mentioned per 1099 MISC instruction, S corporate does not need to receive a 1099 Misc. However, they refused to correct 1099 Misc. They replied “we chose to issue the 1099 to be on the safe side for our client. It’s not forbidden, not illegal.” I am not sure how to convince their accountant to correct the 1099 Misc. To my knowledge, there is no specific spot on 1020S to enter 1099 Misc form with payer’s information. Would this cause IRS alert if only income is included on the return but this payer’s information is not showing on my 1020S? (Basically IRS doesn’t have the information from our 1020s return to match this payer record).

Brian
Brian
1 year ago

Hey,
So last week I received a 1099k form filed by a company named Dwolla Inc located out of Iowa. The form states that I received payment in the amount of $4,000 dollars which I never received or no anything about. The merchant copy number is only one number (0). I attempted to contact this Dwolla company and have yet to hear back. So now I have to claim this $4000 dollars that I never received or have no knowledge of. Not sure if it’s a scam because my SSN is on the document. Your advise on what to do would greatly be appreciated.

Thanks

Joe
Joe
1 year ago

Today was the day. I was almost through filling my taxes out online when I realized I had one more form left. It is a 1099-MISC from CMG Corporate Services Inc. out of GA. I have no idea why I received this as I am in MA and when I call the number, it goes to a voicemail of a woman stating her name and nothing about the company. It says on the form the “other income” is $750. Am I being scammed here??

Please help!

Thanks,
Joe

David W Williams
David W Williams
1 year ago

Good day Eric, i worked for a private christian school for four years as a bus driver, teacher and coach. In 2018 they sent me a 1099 for driving the bus. I do not own the bus the school does. No other year did i receive a 1099 and neither had the other drivers. When i asked about it it was swept under the rug. What is the proper procedure in reporting the school and this issue to IRS?

Donna Spakes
Donna Spakes
1 year ago

Enjoyed your article and definitely will continue to follow. 🙂

I do a side hustle and file a schedule C each year.
I did some free work for a friend who opened a business. I invoiced her for reimbursement expenses which she paid.

The new accountant sent me a 1099-MISC for all of the reimbursed expenses. I asked him to correct it, he did and I received a 1099-MISC with an X by “Corrected” at the top.

My question, is do I report the corrected 1099-MISC? Or do I simply keep it for my records and carry on?

Jennifer
Jennifer
1 year ago

I received a 1099 in the mail, although i did not know I was working for a 1099 company, we had to report to the same building everyday, we had a dress code, they provided all the equipment we needed, always worked in the same building.  Now I am told I owe those taxes and the taxes the should have paid on me.  I thought this was not considered a 1099 job.  Is there a form to fill out to dispute this with the IRS?

Ron Starr
Ron Starr
9 months ago

I received a a 1009-NEC from Varadero Masters Fund LP C/O Walkers Corporate Services LTD and i cannot find any information on who the are. I never received any money from them.

Has anyone else received a 1099-NEC from them?

E Pillian
E Pillian
9 months ago

Thank you for taking the time to answer our questions! I have received a 1099-NEC from an LLC that has been refusing to send me my pay for 2020 (legal action pending). I have not received any compensation for services rendered for the LLC in 2020, but they have reported that I have been paid the full amount owned for 2020 to the IRS. How does one go about reporting this to the IRS?

Carlos Soriano
Carlos Soriano
7 months ago

I received incorrect IRS Form 1099. My property manager won’t issue me a corrected 1099 inspite of repeated e mails and phone call. What is my recourse.