taxgirl® - tax news, tax info and tax policy

Ask the taxgirl: Incorrect 1099

by Kelly on April 17th, 2008

Taxpayer asks:
I received my 1099 on Feb. 8 and noticed that the amount looked higher than it should have been. So I checked my bank records twice. Compared to the 1099, my bank statements said $646.01 less than the 1099.
Feb. 12, I call my ex-boss’ accountant (T), and tell him about this problem. I tell him that I didn’t want to talk to her at all, and he said that he would.

Feb. 26, I call T. He said, that he believes that amount on the form is correct. But I tell him that I have bank records. He says that he understands and that he would change it but he needs her permission or authorization.

Mar. 11, I call T again, nothing from her.

Mar. 13, I finally have the guts to call her and ask to see her records and compare my records. She says, sure. We meet, she looks at my bank records and says “you didn’t you to bring your bank records.” And guess what? She did not have any records at all to show me. She said twice, she was going to call T that day, I said thank you.

Mar. 14, I call T, and tell him that she told me that she is going to call him. He says nothing from her, and he will leave a message.

Mar. 17, I call T, nothing from her.

Mar. 18, I called her and gave her 2 options from my accountant 1) call T 2) pay the difference of what we (spouse) might owe. She replied “I don’t now how much that is.” I told her “that is your fault”.

Mar. 19, I call T, good news. She called, change it. Bad news, T does not have the forms, he has to order them.

Apr. 1, I call T he tells me that he had to order them from his suppliers, supplier.

Apr. 9, I call T he tells me that he is waiting on the UPS man, then he can do my forms? He said he would call when they are done.

Apr. 15 tax day, nothing. Who’s fault is this? Mine, for waiting so long to confront her personal and semi-verbal to change it? T, not having forms in the first place? Hers, putting the wrong amount, not wanting to change it, and delaying it, and maybe having hold on the accountant? So so sorry for the lengthy descriptive question. Hopefully you can answer this for me. If not thank you for letting me vent.

Thank you.

Taxgirl says:
Clearly, you made an effort to resolve the matter.

The responsibility is with the issuer to ensure that the 1099 is correct.

I would contact the IRS and advise that the 1099 is not correct. Check out this prior post for the phone number and what to have handy when you call.

If there are interest and penalties to you as a result of the payer’s failure to resolve the matter, IRS should be willing to abate - problem solved. If the IRS doesn’t abate but it is the fault of the payer, I would send them an invoice for the amount due as a result with a note that you might take them to small claims court to recover if you are not reimbursed. Of course, the latter depends on the rules in your jurisdiction regarding the amount, ability to sue, etc., so I would strongly recommend that you wait to see what happens with the IRS first and then contact an attorney if you still have an outstanding liability.

Good luck.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl!

Share This

Related Stories

• Ask the Taxgirl: No Tax Forms!
• Ask the taxgirl: No 1099
• Are You Guilty?
• Ask the taxgirl: 1099s, 1040s and Rebate Checks
• Ask the Taxgirl: Issuing a 1099

POSTED IN: ask the taxgirl, individual