Employer stalling on 1099 what can I do?

[mrsklamc]

DH did some contract work; he did receive a 1099 but it had 2 different numbers on it, and we can't get the guy to send a corrected one or documentation of how he arrived at those #s. We did keep records of our own but we have yet a 3rd number. This is the only thing holding us up from filing on Monday and I am ticked off.

 

[kydisneyfans]

Our company miscalculated numbers one year and had a 1 month extension to get things corrected. I don't think there is much you can do until March legally.

 

[mrsklamc]

Was the extension automatic, or did they have to file for it? And even if he gets an extension til March, what can I do then?

 

[phred52]

I was told that companies have until Feb. 15th this year to send them out, that it will be the 15th going forward now every year.

 

[wvjules]

I was told that companies have until Feb. 15th this year to send them out, that it will be the 15th going forward now every year.

Told by who?

 

[mrspaha]

I would wait till you get the final number from the company issuing the 1099. They should be able to tell you what that number is, and how they arrived at it. Make sure it agrees with your records. If not, make sure they explain the discrepancy to you.

It's important that you report the exact number that they show on the 1099, because the IRS has a program where they match what the business sends in and what you report on your 1040. If there is a difference and you under-report the income, they will calculate a new tax plus charge you penalty and interest for under-reporting income.

These notices usually come out much later in the year, and they are a real pain to deal with. So, if you can be patient, it's to your advantage to wait to get the correct 1099 from the business before submitting your return.

 

[wvjules]

Found it!
http://www.irs.gov/taxtopics/tc154.html

 

[n2mm]

Yep, also read they have until Feb. 15.

 

[Jeff_G]

I would call up the employer and tell them once more that your numbers don’t match. Ask to sit down with them and your documentation and go over things. If they refuse or give you any grief, tell them you will be filing with the IRS using your own numbers, then when we are audited you will be providing your documentation to the auditor and he can get a hold of you to compare your books.

See if that gets them motivated.

 

[seashoreCM]

Don't you know your own number?

Even if you have a 1099, use your own number. Raise a dispute with the payor promptly if the 1099 disagrees with your number. File a dispute if you are audited because your number differs from the payor's number and you are still disputing it.

 

[mrspaha]

I disagree with seashore. The problem with using your own number, if it differs from what the employer files, the IRS will send you a tax notice down the road. Yes, you may be right; and yes you may be able to prove it, but it is an extremely time-consuming process to deal with the IRS.

The best thing to do is to resolve it with the employer now before you file your taxes. They should be able to tell you exactly how they came up with their number. I would think that they also will want to resolve the issue, because I doubt that they will want to have to deal with the IRS either.

 

[Allison]

The link referenced is for W-2 or 1099-R. A 1099-R is for retirement distributions and is not what the OP is talking about.

The OP is looking for a 1099-Misc which does not come from an employer as it means someone is an independent contractor. Employers issue W-2's. It is only extended to Feb 15 if completing box 8 or 14 which would not apply here (I would guess).

The 1099 instructions say if the form is incorrect and you can't get the payor to correct it, to attach an explanation to your tax return.