I work for a small company and my income is reported on 1099-misc. Late in 2024 the company had cash flow problems and I didn't get paid for a couple months salary. In January I adjusted my estimated tax withholdings to reflect the lower income for the year, and they issued me a 1099 to reflect the actual amount I was paid for 2024. A few weeks later they paid me for the missing months, but now they've issued a new 2024 1099 with that income included, even though it wasn't paid until Feb 2025. If I file with that income, I'll probably get penalized for under-withholding. So my question is, can the company put income on a 2024 1099 form that wasn't paid until 2025? And, if so, is there a way to explain to the IRS that my estimated taxes were done in good faith, but the company added income after the fact and after the deadline for 2024 estimated taxes, to avoid being penalized?
