Dear Taxguru,

I recently filed my 2006 tax return and found out that I omitted to include in income a 1099-Misc I received from a prior consulting engagement.

The amount of 1099-Misc is $10,500! I did not deliberately omit it, I just forgot to include this amount, as I do a lot of small projects and the company whom I worked sent the 1099-Misc report in late March 2006.

I am really worried as I heard from a few people at work that thare are substantial penalties and fines for not declaring the correct amount of income. I want to correct my mistake.

Can you please suggest some advise for me. Thank you..

By, the way, you have a great site, excellant questions on different subjects, all very useful stuff.