Do I pay 1099-MISC Local Tax based on the 1099-MISC issuers location, or my businesses location? Received a tax bill for a 1099 from a customers local tax authority.

[jlinkey]

I'm an autobody repair shop, I performed services for a customer located in a different local tax district at my location. My customer issued me a 1099-MISC, their local tax authority sent me a tax bill for the 1099. I'm not located in that tax local nor did I perform any services there. Do I pay this?

[Critter-3]

Call the number on the notice and ask that very question ... they were probably using the address on the 1099 for work you did at your business location. 

[rjs]

Is the bill for sales tax or for income tax?

Are you and the customer in the same state? If so, this is a matter of your state's tax laws. The answer might be different depending on what state it is. As Critter-3 suggested, start by contacting the agency that sent the bill and explaining that you did not do any work at the customer's location.

[jlinkey]

Income tax, we are in the same state, Ohio.

From what I've heard the city tax dept. that sent me the bill does this quite often, just sending out a bill to see if it sticks 😒. Thanks for your help, I'll let you know how it goes. 

[Critter-3 · Accepted solution]

Ohio city taxes are paid where you live & work  ... call the city and contest their contention. 

[jlinkey]

Apologies for late response, sick as of late. I contested the tax bill, sent in proof of my business location with Secretary of State filing, they dropped the bill. It might have also helped that I claimed a loss on this income via the Schedule 1 filing for my return that year, either way the bill was dropped. Thanks for your help.