Question

Unknown Form 1099-Misc

Forum|Forum|6 years ago
March 19, 2020
1 reply
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Hi,

We received the form 1099-Misc that we have no idea. We called the payee for a week or so, and they still said that they haven't had anyone to take care of our case (we are wondering if they are short of staff because of the recent COVID-19) If they still don't get us back why they file this 1099-Misc to us before the tax filing deadline, may we know what we should do?

1. Should we ignore it and not to file it; or

2. Should we simply file it (but it is unfair to us); or

3. Should we not to file it and report it to IRS separately (don't know how to tell the IRS)?

Please kindly advice. Thank you.

D

DonS1

I recommend not doing any of the 3 options you listed. #1 will lead to an audit, #2 unfairly penalizes you, and #3 won't get linked to your tax return. Instead, I'd suggest filing for a time extension to give you time to get the company to issue a corrected 1099. If they correct it, that is likely to be the least work for you. A second option is to file before they correct the 1099. In that case attach to your tax return a copy of the false 1099 with an explanation that (1) it was sent to you although you have no connection to the company; (2) documentation of your efforts to get them to correct it. Document date and time of calls, who you spoke to, and if possible send a certified letter to the company demanding they fix the 1099 and include the certification stamp and copy of the letter.