1099-MISC not received for income paid to a contractor

[m2m]

Hired as a contractor by a small business to do miscellaneous tasks.  Have not received 1099-MISC.
On tax return is the actual income received.  What if the 1099-MISC amount reported to the IRS by the business is higher than amount on tax return? It would look like contractor under-reported income and will get audited?  What to do?
Thank you!

[swamp]

call them and ask for a 1099?

[ArchietheDragon]

Feb 26, 2016 14:35:14 GMT -5 m2m said:

Hired as a contractor by a small business to do miscellaneous tasks.  Have not received 1099-MISC.
On tax return is the actual income received.  What if the 1099-MISC amount reported to the IRS by the business is higher than amount on tax return? It would look like contractor under-reported income and will get audited?  What to do?
Thank you!

Calling the contractor is a good first step.   See if they issued you a 1099.   If not, report the income you received.    

[m2m]

The business (contractor's client) who hired the self-employed contractor is required by IRS to send 1099-MISC to the IRS and also send a copy to the contractor.  Contractor has called/emailed the business/client to ask for his 1099 copy - but no response.  Can report on tax return income actually received from client but concern is client may have reported to IRS an amount higher than what he paid the contractor.  Obviosly, tax return will not match IRS 1099 information; most likely result in audit on the self-employed contractor. What can contractor do in this scenario?
Thanks again.

[ArchietheDragon]

Report income earned.

[whoisjohngalt]

Feb 26, 2016 20:00:57 GMT -5 m2m said:

The business (contractor's client) who hired the self-employed contractor is required by IRS to send 1099-MISC to the IRS and also send a copy to the contractor.  Contractor has called/emailed the business/client to ask for his 1099 copy - but no response.  Can report on tax return income actually received from client but concern is client may have reported to IRS an amount higher than what he paid the contractor.  Obviosly, tax return will not match IRS 1099 information; most likely result in audit on the self-employed contractor. What can contractor do in this scenario?
Thanks again.

You are not going to get an audit over under reported income.  You will get a notice that you owe additional tax.  You can dispute it and prove it that you didn't get more money.  Or you can pay the difference (plus interest and penalty).

What amount are we talking about here anyway?

[m2m]

Thanks everyone.

John,
Income actually received is very small - less than 10K.  But found out that client may not be honest in his business dealings - so quite possible to put in a large amount on the 1099; increase business expense, reduce taxable income, reduce tax. 
Thanks. 

[TheOtherMe]

Feb 26, 2016 21:24:46 GMT -5 m2m said:

Thanks everyone.

John,
Income actually received is very small - less than 10K.  But found out that client may not be honest in his business dealings - so quite possible to put in a large amount on the 1099; increase business expense, reduce taxable income, reduce tax. 
Thanks. 

1099 should have been issued by now.  Hopefully you have records of amounts received from client.  Keep that and hope for the best.

Most likely, it would be a letter about the mismatch of numbers, but if it is a huge number, IRS may audit you says the former IRS agent.

[Ombud]

I had to dispute income in 2013 so unfortunately familiar with this. Report income, eventually they will ask YOU for documentation (checks, bill, estimate for job, signed contract, etc, you can get deposited checks from your bank), turn it in, resolved within 24 months

[TheOtherMe]

I had a problem a few year's back because of the scanning at the IRS did not read the decimal point on the 1099.  Person who paid me the money and issued 1099 wrote a letter to the IRS and provided his canceled checks. 

The IRS correction letter made a huge difference to me.  What was actually $3,600 had become $36,000!    They assessed substantial understatement penalty, interest and underpayment penalties. 

When it was finally straightened out I owed nothing and the person who paid me the money said he would never use decimal points on 1099s again.