Do all of my clients have to send me 1099-Misc? Need advice...

I am a sole proprietor - web designer, but I have a company name (DBA).  This whole 1099 thing has me stumped this year.  Normally I would always submit my income under General Income, and I have had a few companies sned me 1099s in the past, but they were companies I worked with regularly, so it was expected (since I signed a W-9 when I was first hired).  But last year, I had a regular client who I just built a website for once, nothing on-going, send me a request for a W-9 and his accountant ensured me it wouldn't do anything to my tax return... Well, halfway through the summer, I got hit with a fine and had to pay taxes on money I already claimed because of that late 1099 that was sent in.

So I'm still unsure about how to enter income this year, because I heard that everyone who paid me over $600 last year is supposed to send me a 1099 now?  That's a ton of clients, many of which I don't even remember. I tried contacting all of them and sent them my W-9, informing them that I was going to submit each as a separate 1099 (at the recommendation of Turbo Tax experts who told me I was screwed if they decided to send it out after I submitted.)  I only heard back from a few of them, so I don't have their EIN numbers anyway, and can't submit that income separately.

So now I have to submit as General Income for most of them, what happens if they decide to send me 1099s a month from now? Do I end up getting fined for each one?

This is way too messy with the 1099 thing, because according to Turbo Tax, I cannot submit income as a 1099 unless they do... Turbo Tax was unclear of the consequences, and reluctant to provide any guidance on this one, so I have no idea how to handle this. Don't these clients have a responsibility and get fined if I claim a 1099 and they don't submit one? Or is it all on me to pay fines if something goes sideways? Aren't they required to send me a 1099 by a certain date? What happens to them, if they don't submit it by a certain date, or not at all? Do they get fined?

I'm asking because I'm having trouble getting through to some people, maybe they are uncomfortable sending me their SSNs or something (I know I would be too!) I mean, who ever heard of having to share your SSN with a stranger you hired for a few weeks last year? I don't even feel right asking them for it, but I have no idea how to convince them it's necessary. If I could warn them of the fines involved, that might help, but if they don't get fined, they have nothing to worry about (only I do.)

Any advice?

    So you included the income and got the 1099Misc later?  That should be ok.  I would have fought it with the IRS.  As long as you report as much or more income than you get 1099s for you should be ok.  The 1099 Misc info you enter on your return does not get sent to the IRS.  Just the total income gets sent.  I don't know why you had a problem.   
    • That's what I always used to think too. But when I contacted Turbo Tax to see if they could help me on this, they warned me that any income not reported as a 1099 (if a client sends one out to me later) is considered unreported income, so the IRS treats it as something that wasn't included. So according to T.Tax, if I bulk everything under General Income, then receive 5 new 1099s after I submit, those are all considered new income, and each one is a separate fine, etc.  So naturally, I'm freaking out, because I can't reach all my clients at this point, so have no idea if they are planning to send one out to me or not. There's just too many to contact via email, I have tried, but many are not even responding.

      Then today, one client tells me they're sending a 1099-K because he paid with a credit card, I don't even know what that means LOL!  So confused.  I didn't even expect that every client would have to send a 1099, that sounds ridiculous. I would never send a 1099 to the guy who fixed the roof on my house, for instance... or the Pest Control guys who come every 3 months.. Why should a web designer have to receive 1099s?  Makes no sense... impossible to keep track of...
    • Hello, great thread and question. Did you ever get this resolved?
    • No, actually I was lucky enough to NOT receive any additional 1099s after I filed last year, but I'm having the same issue again this year so again, I'm not sure what to do yet. TurboTax doesn't know how to handle it, and I can't reach the IRS to ask them either :(
    • I'm so interested in this thread. Having same problem, but from the sender end. Was just asked by CPA if I sent out our 1099s. Didn't; forgot that addt'l gov't intrusion problem. Now I'm worried about hurting the people to whom I think we need to send 1099s.
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