Self-employed independent contractors are able to correct information on a 1099-MISC form by contacting the client who sent the form and requesting a correction of the error, reports Nolo. Companies issuing 1099-MISC forms correct them by sending new updated forms to their contractors and to the IRS.Continue Reading
Form 1099-MISC is used to report miscellaneous income such as rents, royalties, services, direct sales and other income to the IRS, according to the IRS. The deadline for clients to send 1099-MISC forms to contractors is January 31, states Forbes. Contractors should check the data on the form carefully, because if the IRS notices a discrepancy of income between what the form states and what the contractor reports, the contractor could be audited. Contractors should contact clients immediately to report mistakes, as clients are not required to send copies to the IRS until the end of February, and there may be time to correct the error before the defective form is sent. If the IRS has already received the form with incorrect data, the client must send a corrected form to the IRS and a statement to the contractor showing the correction, states the IRS.
If clients fail to send 1099-MISC forms to contractors, it is unnecessary for contractors to ask for them, as the onus is on the business to provide the IRS with the forms, reports Nolo. The contractor can file income tax returns using personal records of income without penalty, but the client may be fined for failing to file 1099-MISC forms.Learn more about Taxes