1099 is a tax form that reports any income you received during the previous year that wasn’t from a regular job. If you’re self-employed, run a side business, or receive income from investments, you’re required to file 1099. Missing 1099 can have serious consequences for both the recipient and the filer. If you miss the 1099, the IRS won’t have a record of the income you received, which can result in a tax liability. If the IRS discovers that you received income that wasn’t reported, they may assess penalties, fines, and interest on the outstanding tax amount according to TurboTax.
According to Nerd Wallet, there are many different kinds of 1099 forms and one thing they all have in common is they cover payments you receive that are potentially taxable.
If you miss the 1099, it’s essential to take action as soon as possible to fix the problem. The first step is to contact the person or company who was responsible for issuing 1099. If they haven’t filed the form yet, ask them to provide you with the necessary information so that you can file the form yourself. If they have filed the form, ask for a copy of the form so that you can ensure the information is correct.
If you can’t get a copy of the 1099 form by mid-February, you should contact the IRS. Keep in mind that the form must include your name, address, and taxpayer identification number, as well as the name and address of the person or company who paid you. You’ll also need to report the amount of income you received.
Once you’ve gathered all of the information you need, you can file a 1099 form with the IRS. If you’re late in filing the form, you may be subject to a penalty, but you can minimize the penalty by filing the form as soon as possible.
Missing 1099 is a serious issue that can result in tax liabilities, penalties, fines, and interest. It’s important to take action as soon as possible to fix the problem by contacting the person or company who was responsible for issuing 1099, gathering the necessary information, and filing the form with the IRS. By doing so, you can avoid potential issues and ensure that your taxes are accurate.