Tax season is upon us, which means it's time to gather together all of your 2021 tax forms.

Let's say one of these forms- a 1099- is incorrect. Worse yet, imagine that it overstates your income! We understand that, come tax time, every penny counts. So how do you go about correcting this error?

Gather the Facts.

Put together a dossier of any documents that support your claim to correct the tax form. This may include bank statements, receipts, or emails.

Who is the 1099 from?

As soon as you notice a mistake, contact the vendor. Tax time isn't just busy for you. Likely your vendor will also be slammed with extra work. So it's better to contact them about a mistake sooner than later.

Let them know what the error was and that you will need a corrected form reissued ASAP.

If you have a hard time getting a response, send a written request by certified mail. 

To control the time frame, give the vendor a reasonable, yet firm deadline to correct the error. 

Request written confirmation.

Do your due diligence. Even if the vendor agrees with your change, request written confirmation. This should state that the vendor agrees with your change and should also outline the correction.

Remember that if a 1099 has been issued by a vendor, the IRS has been informed of the amount that you were supposedly paid. 

Let's say the vendor never makes the correction- it happens. By requesting written confirmation, you have something to send along with your tax return to explain why this amount does not match the number the IRS was given. File this document with your tax return to help defend yourself against a potential audit.

Mistakes happen.

Of course, mistakes happen. At Gold Standard, we understand how frustrating this can be. However, our seasoned tax accountants are pros at navigating hiccups like these. Let us take the stress of tax season off of your plate. Schedule a consultation with one of our experienced tax accountants here. 

Contact us: 
[email protected] | CA (760) 888-6247 | NY (845) 237-4060

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