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5 Answers

What would happen if I don’t declare a 1099-MISC form on my taxes?

Asked by: tmoran 2133 views YA Discussion

I got a 1099-MISC form from some work I did, but even though all the information printed in it is correct, the social security number on it is wrong, it’s not my social security number or even close to it.

I contacted the payee (my cousin) and he wants me to just file it like that, that it will be OK and that he asked his accountant to fix it but I don’t believe him.

I really want to file my taxes soon and I’m scared that the IRS might try to bite my butt over any mistake or think I’m lying. I don’t mean to not show that I earned that money (not that much, it was only like $ 1,200); what I’d like to do is file my taxes and modify them later (if possible) when I’m sure my cousin fixed this, or declare it next year.

I don’t know what to do. This is seriously giving me a headache and at this moment my cousin is just helpless and not replying to my texts about it.
Hey Quick Answers, you are a jerk. I am in no way trying to commit tax evasion. Did you even read the question? THE SOCIAL SECURITY INFORMATION IS *WRONG*. I said I feared to put it there UNTIL this is fixed (I will make sure it gets fixed) because I don’t want the IRS to be unable to match my stuff and think I was entering inaccurate information on purpose. Get over yourself.
And believe me, if I knew what to do, I would have filed my taxes a while ago and wouldn’t be here asking this question.
I just noticed I made an error, I meant to say I contacted the PAYER (my cousin), not payee; I’m the payee. Duh.
The reason I called you a jerk is because you are making it sound like I am trying to scam on purpose. I’m not that kind of person, never been and will never be. I don’t mind paying my taxes. And if the correct thing to do is enter the 1099-MISC even if the SSN doesn’t match, you bet I will.

I haven’t gone ahead and filed it because as I said, I’m worried about the IRS thinking I’m entering fake information or messing things up since the form’s social security itself is messed up. I don’t know a thing about taxes, only the basics and I’ve never been in this situation before.

5 Answers

  1. tro on Mar 08, 2012 Reply

    if you are confident of the amount, file your Sch C as you normally would(the 1099 does not accompany the tax return and if you efile you do not enter the 1099 M information–since is it wrong)
    if the SSN is not yours, the person whose it is will be contacted for his negligence in failing to file it, not you
    file as you normally would based on the information you know to be correct

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  2. mrreliable3599 on Mar 08, 2012 Reply

    Report the income.

    The 1099-MISC is a reporting form used to reconcile the payer’s and payee’s records. You still report the income no matter whether the payer’s records are screwed up or not. The IRS doesn’t have any problem with someone reporting more income than they have on record – unless you’re using that income to claim EIC. As long as that’s what you really earned, report it, and you’re safe.

    Don’t go through life terrified the IRS is going to look at your returns. Instead, ASSUME the IRS is going to look at every return you file.

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  3. Quick Answers on Mar 08, 2012 Reply

    You DO know what to do, you just don’t want to do it. You want to commit tax evasion.

    Whether or not you get the 1099-Misc, you HAVE to report this income and pay the tax on it. $ 1200 will cause you to owe about $ 150 in SE tax plus any income tax. And no, you cannot just declare the income “next year.”

    By law, you are required to report all income even if you didn’t get a 1099-Misc at all. Either the CPA fixes it or the IRS does. (If you think the IRS doesn’t have a way to match your name and address to the correct SSN, you are kidding yourself. They do it all the time.) Maybe the IRS won’t know this year, but you can bet they will when the owner of the SSN that is on the form says, hey, that’s not mine. And when the IRS figures out that you conveniently *forgot* to list the income because you figured they wouldn’t find out, they can and will audit you for the last 6 years looking for other cases wehre you *forgot* to report income.

    Edit. So you think I’m a jerk. So what. I’m still right. The fact that the SSN is wrong on the 1099-Misc is not going to prevent you from filing the income. The IRS doesn’t care that it’s wrong. (The rightful owner of the SSN does, but that person can just point out that the name and address isn’t his.)

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  4. Cathi K on Mar 08, 2012 Reply

    File the proper amounts. It is your responsibility to keep accurate records. You do not have to wait for a 1099misc. Your cousin should have his accountant do a corrected 1099misc.

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  5. Bostonian In MO on Mar 08, 2012 Reply

    Uhhh… No, Sparky, YOU are the jerk in this scenario. If you don’t declare the income, that’s the textbook definition of tax evasion. PERIOD. Being called out for that does not make the caller a “jerk” but calling her out certainly makes YOU one.

    This will wend its way back to you eventually if you don’t report the income. The person whose SSN shows up on the 1099-MISC will be contacted by the IRS (or the payee will be contacted about a correction if the SSN is void) and it will eventually be corrected. That puts a nose on the money leading right back to YOU. You’ll get a bill for the taxes that you owe, plus penalties and interest if you didn’t report it on your return.

    There’s NO reason to delay preparing your return. You don’t attach copies of Forms 1099-MISC to your return. The law requires you to use your business records to prepare your return, NOT any Forms 1099-MISC that you receive. Since you are already aware of the income, you are legally obligated to report it and pay the taxes on it NOW. PERIOD. End of discussion.

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