USA tax filter

March 29, 2021 6:13 AM

Can a company that issued a 1099 see when/if the person receiving the 1099 income filed their federal taxes? And would a company issuing a 1099 face any sort of trouble if the person receiving the 1099 income failed to file taxes?
posted by anonymous to Work & Money (4 answers total)

I would guess the company would have no problem. The company will have sent the 1099 data to the IRS anyway. The individual could have a problem not reporting taxable income.
posted by tmdonahue at 6:27 AM on March 29, 2021 [4 favorites]

To the best of my knowledge, the only entities that can see when a person has filed taxes are the IRS, the state tax agency, and any tax-help vendors used.
posted by NotLost at 6:36 AM on March 29, 2021 [1 favorite]

Can a company that issued a 1099 see when/if the person receiving the 1099 income filed their federal taxes?
No, it is none of the company's business.

And would a company issuing a 1099 face any sort of trouble if the person receiving the 1099 income failed to file taxes?
No. A company is only responsible for doing the business filing.
posted by magnetsphere at 7:11 AM on March 29, 2021 [3 favorites]

I do think it's important to reiterate that the company will almost certainly send a copy of the 1099 to the IRS, so while the company won't know or care whether the 1099 recipient files their taxes, the IRS certainly will.
posted by Aleyn at 1:30 PM on March 29, 2021 [1 favorite]