Legal Question in Tax Law in Illinois

I received a 1099 MISC but the amount reported on the 1099 is wrong/too low as the company forgot to include certain amounts in my total compensation. I want to report the correct amount on my tax return even though it will mean that I pay more in taxes. I have asked the company to issue me a corrected 1099 but they seem unwilling to do so. Instead they told me just to report the correct amount on my tax return. I am afraid to do so because I am concerned that it may cause a problem since it will not match what the company reported to the IRS. Is it okay to do this because I am reporting a higher amount? What do you suggest I do?

Asked on 3/22/18, 10:43 am

2 Answers from Attorneys

David K. Staub Staub Anderson LLC

You should report the correct amount on your taxes. The fact that you are reporting more than was reported on the Form 1099-MISC will not cause you any problems, particularly since the amount you are reporting is greater than the amount shown on the Form 1099-MISC you received.

Read more
Answered on 3/22/18, 10:46 am
Virginia Prihoda Law Offices of Virginia Prihoda

Mr. Staub is correct. The IRS doesn't ask you to identify the sources of your 1099 income, they just want to make sure the amount you report on your tax return is equal to or greater than the totals shown on the 1099s you receive. You need to keep a business record of your income as you receive it--don't wait for the 1099s to be received before computing your gross revenue. The correct amount to report should be apparent from a review of your records.

Read more
Answered on 3/22/18, 11:11 am

Related Questions & Answers

More Tax and Taxation Law questions and answers in Illinois