So I've been asking my contractor to provide me with a 1099 for 2016 wage and she replies that she hasn't started taxes, would file late, and that she couldn't give me one. She did say just to total up the checks I got that use that amount. So I did the math, then asked her for the total she'll be reporting. It's $4000 more than the number I got.
Poking around I looked at the wages she paid me in 2015. There's a check issued for $4000 dated 01/04/2016 that went to the total wages for 2015 documented on that 1099, which I already paid taxes for. I'm figuring she is counting that check for the 2016 wages. Now I'm super scared.. She said she would check with her CPA...
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You certainly have some serious issues with this contractor.
The IRS does tend to go with what the 1099 says, but in this case if you can produce your records that show that the income should not be on your 2015 1099, you'll have substantiation for your position on your tax return. The fact that she is such a poor record-keeper, and so late with the required information return gives you more credibility than her.I can't say what will happen for certain,but if you have records and checks and bank statements that show your income for each year, you are in a strong position. Otherwise, these 1099's could have you double reporting this income.
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