Company Not Sending 1099
If the company that is supposed to
send out a 1099 form to you has not sent out one, you
may have to fight with them to get it. Although,
as a rule for 1099 forms, the company is supposed to
report certain business transactions to the IRS and at the
same time send out the 1099 forms to the payees, some companies
are not complying with the IRS.
Is the company breaking the law by not
sending out the 1099 forms?
By not sending out 1099 forms to all persons
who are entitled to receive them, the company is not complying
with the IRS rules but there is no criminal charge that will
get the company in trouble so some of them decide to cut costs
and not send them out.
What to do when you have not received the
1099 MISC form?
If you are an independent contractor, a self
employed individual, a sole proprietor, etc (not a corporation)
then you are supposed to have sent out the W-9 form to the
company that is paying you. Then the company is supposed to
report transactions to the IRS on a 1099 form as well as
sending out the 1099 MISC to you.
If the company does not, then it is your
responsibility to obtain it from them. The IRS does not require
that you have the form as long as you know how much you have
made during the year and can report it correctly on your tax
return. If the company can tell you how much you have made and
you are not disputing that amount, then you can use that number
to file and prepare your tax return even without having the
1099 MISC form. Many people file and prepare their taxes
without the 1099 MISC forms.
Possible problems with not receiving 1099
Although the IRS does not require that you
receive the 1099 form, they have a 1099 form about how much the
company claims that you made on file because even when the
company does not send you the 1099 form, they surely sent one
to the IRS.
That means, you will have no proof of how
much the company claims that you made. They could tell you that
you made $10,000 whereas they told the IRS that you made
$20,000. When the IRS gets round to auditing all the tax
returns and you reported $10k and the company reported $20k
then the IRS will send you a letter demanding tax payment on
the portion not reported by you.
If you have a 1099 MISC from the company,
then you can produce that 1099 MISC form and prove to the IRS
that you are correct. However, if you do not have the 1099
form, it will be difficult to prove to the IRS that you are
correct and their 1099 form on file is incorrect. Bear in mind
that it could be a couple of years before the IRS inquires so
most people would have forgotten what happened by then.