Error on 1099-MISC

[fenelusfamily]

A business I conducted work for issued me a 1099-MISC this year. They entered my earnings in wrong by about $4,000. They claimed I made over $10,000 when I really made a little bit over $6,000. I have asked them to correct the 1099-MISC, but they are telling me that since the IRS has received the information, a correction can not be made and I have to claim whatever they put on the form. 

Is this correct? What do I do if they do not correct the issue?

[DianeW777 · Accepted solution]

No, that is not correct.  If they issued a Form 1099-MISC for services performed, first this is the wrong form.  The correct one is Form 1099-NEC.

Secondly, they cannot issue an income amount that you did not receive AND they can certainly correct it. Often these mistakes are corrected with the IRS.  It's a simple as entering the correct amount and then checking a box that shows 'Corrected". For your convenience I have placed a copy below to show you and for you to show them if you want to take that step. Then they should issue you a copy of the corrected form.

Next, you are required to report the amount of money you actually received.  If they will not issue a new document, then you should keep all your notes, bank deposits and/or documents that show what you actually received from this business where you conducted work. This way you will have the necessary information should you be questioned later.

Keep in mind the Form 1099-NEC would have the same correction box.  It's a very easy correction process.

[fenelusfamily]

Thank you, Diane.

This is very helpful. We will bring this information to my previous employer and if they refuse to correct the issue, I have all my records in order in case the IRS contacts us. 

Thank you for the help. I appreciate it.