Hi, I did independent contract work for a company in Dec 2011. They generated a 1099-MISC form in Jan 2012 to report the income of $1000. But they have never paid the amount of $1000 for the contract work I have done. I still haven't receive the payment as of march 2012. I have filed for my tax returns assuming that the payment will be made and also reported the 1099-MISC income. Also, I am trying hard to collect that $1000 from the employer but they always are postponing the payment and very hesitant to pay. Is generating a 1099-MISC illegal without any payments made? I need suggestions for two things
1) How do I correct the 1099-MISC income reported during the tax filing? 1040X is an option or anything else??
2) I want to threaten the employer to collect my $1000. can I use the point that they " Illegally generated 1099-MISC without payment"??
Please help!!