I was issued a 1099-MISC from a company to me as an individual (on my SSN) instead of to my S-Corporation. The income was reported to the IRS as such as well. This went on for a couple of years (yes, I know, my fault for failure to pay attention) before I received a bill from the IRS for failure to report income. Naturally, there was the "bummer" moment and now what do I do to fix it.

I always deposited the checks to my Corporate account and declared as such on my corporate returns and can provide to documentation need to prove this claim. My accountant said to get the company to issue me corrected 1099s and then I would have to deal with the IRS to sort out the problem. He said it should only be a matter of a few letters with the accompanying paper work trail.

So I asked the company to send me the corrected 1099s but their accountant said it was illegal to issue a corrected 1099 (didn't specify for this problem or just in general) and wouldn’t do it. This can't be right as I know corrected 1099s are issued all the time. I suspect their accountant is incorrect and just being a pain to prevent more work on their part because when I asked for a 1099 for this year, they said again it was illegal for them to issue a 1099 to a corporation, which, while I know they are not required to issue one, they can as I receive them from other clients. I have offered to pay any fees/costs with regards to correcting this issue so I can’t see why it would be a big deal, unless of course, they are correct in stating the legality of the request.

So my question is two-fold. First, is their accountant correct with respect to my situation? Second, if they are correct (and this may be the more complicated answer) how do I deal with this issue?

I am working with my accountant on this issue obviously, but wanted to get a second opinion. Thanks in advance for any and all advice.