Small Business Startup Information

What should I do if my 1099 has the wrong amount?

Try to get the person or company who sent it to fix it. But I don’t advise you to report the corrected amount on your tax return because you can’t be sure that the IRS will get it before you file your 1040.

For your own records, you should always write out an explanation for the mistake and attach it to any bills or receipts you have to prove that your calculation of the number is actually the right one. If you get a corrected 1099, keep it in your files along with your documentation of the error.

Do NOT send this paperwork to the IRS.

The reason I recommend that you start off by reporting an incorrect number is Continue reading

In the financial world, January in the US is known as “1099 month.” Banks, brokerages, payroll services, and CPAs spend many hours preparing the documents. Taxpayers wait for them with mixed emotions, knowing they need the information to do their tax returns and at the same time dreading having to figure out exactly what numbers to report where.

The IRS loves 1099s. Continue reading