2 copies of 1099-MISC from Payer show up at IRS

[Pedernales]

I was looking at my online IRS account, and there is a section that shows the Informational Returns that they've received each year (W-2, 1099s, etc.). I look at that section each year, and it has always matched with various forms until this year. I have a 1099-MISC I get every year for a small royalty. I was surprised to see it appears twice among those informational forms listed on the IRS site. And they are exact duplicates (not a corrected one) with the same small royalty amount on each. So I then looked at my 2025 Wage & Income transcript. And again that 1099-MISC shows up twice in the W&I transcript, and for each it says submission type "original."

I have not filed my 2025 return yet, and am now wondering what to do. I contacted the Payer, and they claim they only sent one. I guess I can phone the IRS to see if they can explain why it appears twice, but they're likely to say because that's what they received. As an alternative I could go ahead and report the 1099-MISC twice to match what the IRS is showing. It would only cost me about another $10 in tax. But I would be glad to pay $10 extra to prevent the stress of an IRS letter for "underreporting" a non-existent 1099 and/or the work of having to amend a return. Any thoughts?

[ReneV4]

If the second 1099-Misc is identical to the first, you should report it only once. Since you've already contacted the Payer and they claimed they only sent one, the duplication error will likely be caught by the IRS's matching system.

However, if you would prefer to report this duplicate, you can do so without paying the additional tax. Simply make an additional 1099-Misc entry, but include a second line item with a negative value equal to the duplicate 1099. This effectively zeros out the duplicate so that your total matches the transcript, while your net income remains correct.

To enter the Form 1099-Misc and also the duplicate, do the following:

1. Go to Wages & Income, select Add more income and scroll down to Other Common Income
2. Click the down arrow and select Form 1099-Misc, click Start or Revisit
3. Enter your 1099-Misc exactly as it appears on the original Form 1099, click Continue
4. In the "Describe the reason for this 1099-Misc", write a description in the box, such as "1099-Misc for royalties" (Remember the description for later)
5. Select "None of these apply" on the next screen and click Continue
6. Answer the additional questions and click Continue
7. Note: Since they are identical, you will likely receive a "You might have duplicate Form 1099-Miscs"

Next, you will need to make the offsetting entry: 

1. Scroll down, but this time, go to Less Common Income Home sale, canceled debt...etc (Found near the bottom of the options)
2. Click the down arrow to the right and click Add to the right of Miscellaneous Income, 1099-A, 1099-C
3. Scroll down to the bottom and select Start to the right of Other reportable income (found near the bottom)
4. Click Yes when you reach, Any other taxable income?
5. Click Add and here you will enter, "1099-Misc for royalties - duplicate", along with a negative, Continue

[Pedernales]

@ReneV4   Thanks for that suggestion.  One followup:  

I'm using Online TurboTax, and after entering the duplicate 1099-MISC, since this is mineral royalty, TurboTax automatically enters 15% depletion as an expense.   If I use the "Other Income" method to enter negative royalty income, that takes offsets the gross royalty income amount, but what do I do about the depletion that was expensed for the duplicate 1099?   Like in this example:

$500 income minus $75 depletion equals $425 net taxed royalty income.

A negative $500 in "other income" is larger than the $425, so that would be taking a $75 expense I didn't deserve.

Thanks again.

[DianeW777]

Yes, you are correct. The negative income entered under 'Other Income' can only be the net amount so that it's equal. 

As indicated earlier, there is no need to enter duplicated income at all. If the two 1099-MISCs are an exact duplicate and you did not receive the income twice, it should just remain in your file with all tax documents and the information about contacting the company in regards to the discrepancy.

@Pedernales