Friday, March 7, 2014

How to Dispute an Erroneous IRS 1099 Form

There are 32 different version of Form 1099. Each version covers a different type of payment, from the 1099-MISC, which covers payments to independent contractors, to the 1099-INT, which covers interest income. However, the most common version is the 1099-B, which details earnings from stocks and bonds. Regardless of which version of Form 1099 you are expecting, it is important to know that a copy is automatically sent to the IRS. Therefore, any inaccuracies need to be disputed before you file your tax return. This is a common enough situation that the IRS has established a simple procedure to follow to make corrections.
Instructions
Keep careful records of your income, regardless of whether you expect to receive a 1099.
Compare the amount on the 1099 that you receive to your records.
Contact the company or individual who sent the 1099 to request an amended 1099 in the case of any discrepancies. Send a second request via certified mail if you receive no response. This step is essential, as the IRS will not assist you if you have not made an attempt to contact the company to request an amended 1099.
After Feb. 14, you can contact the IRS directly at 1-800-829-1040 to request assistance. The IRS will ask for your personal information, your estimate as to the correct amount, evidence to support this and which steps you have taken to address the issue on your own.
File your taxes on April 15 (or the applicable tax deadline for that year) using Form 4852 if you have not received a 1099-R (corrected 1099) by that date. Form 4852 will require much of the same information as your original 1099, but it will allow you to file with the corrected information.

Check your Social Security statement the following year to make sure that the amount of earnings shown reflects the amount of Form 4852 or the amended 1099.
IRS Tax Extension Online 

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