late arriving 1099

[KAOS]

Client (healthcare professional) still hasn't received a 1099 from a an insurance company they worked with. He called them and was told "they don't know when they're getting them out". I thought these were due Feb1? Any recourse or does he just have to wait it out?

[BOB W]

If you are running a business and reporting ALL your income, the 1099s become irrelevant. You may want to verify that the individual 1099's are correct but other than that it does not matter.

Every schedule C should at least have a Cash Receipts ledger...??? And an Accounts Receivable ledger.

[KAOS]

I thought the IRS matches 1099's filed vs reported? Had a client recently get a notice from the IRS saying she didn't report income from a 1099 that was filed in error by company who put in the wrong SSN. She never worked for the company. Still trying to resolve that one.

[BOB W]

They do but that would be outside of reporting ACTUAL cash receipts. The review process is used for errors in the 1099. But I've seen people that only report what was on the 1099s, regardless of what the actual income was in that year.

[TaxGuyBill]

The IRS checks if your total income on Schedule C is at least the amount reported on all 1099-NECs. They don't match the actual 1099-NECs (you don't even need to enter them into the program).

[Snaggletooth]

Someone may be under the impression that the 1099s determine the revenue to be reported. If this is a bona fide business, a record of ALL receipts (and expenses for that matter) should be available.

If the IRS matches anything these days of shorthanded resources, it would match to assure that the reported receipts are at least as much as the 1099s in their system.