From a previous discussion about this subject.
You will have to call the company to see why they sent it to you; there are many possible reasons, including that it was a mistake.
Amounts reported on Form 1099-MISCor 1099-NEC are considered taxable income. If it is showing up on your IRS transcript, you will need to deal with it no matter why it was sent to you.
What to do?
- If you never received the payment reported to you on a Form 1099-MISC or 1099-NEC, do not report it on your tax return.
- Contact the issuer and get an explanation for why they reported the 1099-MISC 0r 1099-NEC income (get names and keep notes).
- If the amount reported is large, you should follow up on the phone call by writing the company to dispute the validity of the 1099-MISC or 1099-NEC. Send the letter with proof of mailing and proof of delivery.)
Unless the matter is explained and resolved to your satisfaction, you should not report that 1099-MISC or 1099-NEC on your tax return. If and when the IRS contacts you for an explanation of why you did not report it, you can provide them with the information you have that proves it was an invalid 1099-MISC or 1099-NEC.
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