You certainly have some serious issues with this contractor.
- First of all, she's required to
provide you with a 1099-MISC by 01/31/2017. She doesn't get to tell you that
she'll give you a 1099 when she's ready. There is a penalty for that.
- That
$4000 should not have been reported in 2015. It belongs on your 2016
return. Cash basis taxpayers report their income in the year that
they receive it even if it is in the beginning of the
year.
- You should file your tax return, and report the income that
you received in 2016, including the $4000.
- You should amend your 2015 return to remove that $4000 and
get a refund for 2015.
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.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
