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My client's 1099-NEC has a higher incorrect amount, what can I do?

This morning I got my 1099-NEC from my Client who I've worked with all year.

 

I noticed it is higher in non-employee compensation than what I recorded for myself. I've emailed the person who handles our 1099s from the company.

 

Are they able to issue me a corrected 1099? Is there a deadline for this?

 

What should I do if I don't hear back or they refuse? 

 

They are the only client I had this year, so I'm concerned it is going to look very odd when I report a lower number. 

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1 Reply
Shannon B1
Expert Alumni

My client's 1099-NEC has a higher incorrect amount, what can I do?

Yes, your client can issue a corrected 1099 for you. There's no deadline for a corrected 1099-NEC, but it's best to wait until the correction is filed before you file your tax return.

 

If your client refuses to change the 1099, you should prepare your tax return using the correct income amount as you normally would. 

 

You may receive a letter from the IRS, send a response with proof (like bank statements, canceled checks, or invoices) to justify the income you reported.

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