Q: What to do if I received an incorrect 1099 MISC
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? Can I just report the higher amount or do I need to insist on having the company issue a revised 1099?
A: I recommend that you file a paper return (not electronic) and include a letter stating why your reported income is more than what was reported. Spell out how you arrived at the different figure if possible. The IRS may penalize the person who issued the incorrect 1099 but you should be fine since you are reporting the correct figure. Just make sure you keep all of your records in the event of an audit.
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