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Old 02-22-2009, 02:30 PM
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Incorrect 1099-MISC

Hi All,

So here is my situation. I did some contract work in 2008 and I just received a 1099 from her. She is reporting my income at 25% higher than what it is. I have asked repeatedly for a corrected form or explanation for the discrepancy. All I get from her is "It was for monies spent on you" and "I have receipts for approximately what the difference is" but she will not provide me with details. I believe I am correct in believing that the 1099-MISC is for income received, not "monies spent on you"...which for the record, I have no idea what she is talking about other than maybe electricity bills for powering the computer I used. I am growing incredibly frustrated about it and am planning on calling the IRS tomorrow but since it is Sunday I can't do anything.

Anyone who could help out, or at least confirm that what I believe is correct would leave me extremely grateful. Thank you sooooo much!

P.S. if any of this seems disjointed it is because it has been a week-long battle and I am more than a bit frazzled!


Last edited by jedibelle : 02-22-2009 at 02:32 PM. Reason: Typos that make me look stupid!


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Old 02-23-2009, 02:03 PM
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Here is what I know about handling an incorrect 1099-MISC --

First, you should contact the business that issued the 1099-MISC and ask them to send you a corrected 1099-MISC.
Keep documentation of these communications!
If you are unsuccessful getting a satisfactory answer to the discrepancy or getting them to agree to send you a corrected 1099-MISC, you will need to call the IRS at (800) 829-1040. It’s best to do so early in the morning, since you’ll have a better chance of getting through.
Explain that you received the 1099 and disagree with the amount that was reported on it, and that you’ve tried to resolve the situation with the business, but have been unable to.
Ask the IRS complete a Form 4598, “Form W-2 or 1099 Not Received or Incorrect.” (You have to request it via this phone number and IRS must complete the form -- It’s not something you can just download from their website.)
You’ll need to give the IRS the payer information from the 1099 you received and the details of how you arrived at your own valuation figures. The IRS will send the complaint form to the business, who has 10 days to respond (you should receive a copy as well).



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Old 02-23-2009, 09:20 PM
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It seems that the Employer has reported more 1099-Misc income to you may have received in 2008. This is not an unusual situation and the way to handle this is to report this income (as it appears on the 1099-Misc) on Schedule C Line 1.

Then I suggest that you claim an expense item called "additional income erroneously reported" under the category called "Other Expenses". I would then attach a statement to the tax return explaining that the Employer has erroneously reported the additional income to you in 2008 for which you have claimed the deduction under the Other Expenses category. You don't really have to call the IRS or get stressed up about this, this is a very common occurrence!

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Old 02-23-2009, 10:53 PM
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Thanks TaxGuru! My concern is that there are no expenses to claim. I wasn't paid nor was I given reimbursement for anything. She literally made up a number (a nice round one, at that) and claimed it on my 1099. She insists that she has documentation of it but will not disclose to me what it is.

That being said, I did contact the IRS and have been told to sit tight and file the numbers that I know to be correct. I thought I could file a 4852 but perhaps that is for a 1099-R, not a 1099-misc?



Quote:
Originally Posted by TaxGuru View Post
It seems that the Employer has reported more 1099-Misc income to you may have received in 2008. This is not an unusual situation and the way to handle this is to report this income (as it appears on the 1099-Misc) on Schedule C Line 1.

Then I suggest that you claim an expense item called "additional income erroneously reported" under the category called "Other Expenses". I would then attach a statement to the tax return explaining that the Employer has erroneously reported the additional income to you in 2008 for which you have claimed the deduction under the Other Expenses category. You don't really have to call the IRS or get stressed up about this, this is a very common occurrence!



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