Employer Refuse to Provide 1099-MISC

[stalgeh]

Hi,

I have a client her employer refuse to provide 1099 MISC due to personal issue. I know we need to report the income, but shell I report it as lump sum in Sch C line 1 or input the amount in 1099 Misc Box 7 regardless of not receiving her 1099 Misc from employer?

Can my client complain to IRS about her prior employer of refusing to provide her 1099 Misc? If yes, what is the process?

Thanks,

Chad

[kathyc2]

Hi,

I have a client her employer refuse to provide 1099 MISC due to personal issue. I know we need to report the income, but shell I report it as lump sum in Sch C line 1 or input the amount in 1099 Misc Box 7 regardless of not receiving her 1099 Misc from employer?

Can my client complain to IRS about her prior employer of refusing to provide her 1099 Misc? If yes, what is the process?

Thanks,

Chad

Your software may have separate input lines for income received on a 1099 or not, but the actual Schedule C does not.

Not having a 1099 should not cause any issues unless having Sch C income increases EIC.

[taxea]

Your software may have separate input lines for income received on a 1099 or not, but the actual Schedule C does not.

Not having a 1099 should not cause any issues unless having Sch C income increases EIC.

The "personal issue" is not explained. I would put it on Sch C other income with an explanation. And yes, if a 1099 would have been required the TP can report the employer to the IRS by letter, if not by form.

[spanel]

The "personal issue" is not explained. I would put it on Sch C other income with an explanation. And yes, if a 1099 would have been required the TP can report the employer to the IRS by letter, if not by form.

Of course this is NOT her employer however. Her "employer" would issue a W2.

Put the total amount earned on the Sch C regardless if a 1099 is issued, no extra note needed.

Chris

[Rapid Robert]

The penalty for not providing the payee statement is the same as for not filing the 1099-MISC with the government. However it is difficult to prove a negative, payer might claim they mailed it first class U.S. mail but it was lost in the mail (reasonable cause exception to penalty). We don't know if the government copy was filed or not.

I only file a handful of 1099-MISC for my clients, and sometimes I'm a few days late mailing the payee copy, so technically there would be a $50 penalty per form. It doesn't seem likely the IRS is going to do anything about a report of a single missing 1099-MISC based only on a statement from the would-be recipient, so I wouldn't waste my time, as there will be no benefit to the recipient other than trying to screw the payer out of some penalties to the IRS.

I guess this worker isn't interested in any future referrals, let alone future work, from this payer!