What to do when a company won't give me a correct 1099?
March 20, 2009 1:17 PM Subscribe
A client sent me a incorrect 1099-MISC and now refuses to correct it. It's in their tax favor. What can I do?
posted by Ookseer to work & money (7 answers total) 3 users marked this as a favorite
(No, you're not my accountant. But my accountant isn't going to get back to me until Monday and this is going to bug me all weekend.)
So they say they've paid me a several thousand dollars (and change) more than they did. This gives me a higher tax burden and them a tax break. It's not an accounting error. I've compared my invoices to my deposits to verify my number. And it's not "a check or invoice crossed the new year" problem. They report a suspiciously round number, the actual number is one of the least round numbers I've ever seen.
I stopped doing business with them early in the year because they refused to pay me. There were some bad words and letters from lawyers sent, and apparently now they're not talking to me at all. Emails, phone calls and letters directed to personal and business addresses have all gone unanswered. I'm not even sure they're still in business.
Do I report the correct amount and deal with the inevitable IRS inquiry, tip them off to the IRS beforehand, or suck it up and pay the extra tax as a "not worth the trouble" fee?