What do I do if I don’t receive a 1099-MISC?

Filing a 1099 is the responsibility of the payer, not you the recipient. You will not be penalized if the company who pays you doesn’t file a 1099 to report the payments. That’s their problem – not yours. Your responsibility is to declare all of the taxable income you receive, whether or not it’s supported by a 1099. If the company who paid you submits a 1099 to the IRS, and for some reason you didn’t receive it and you didn’t report it on your income tax return, the IRS will send you a letter – actually, a bill – saying that you owe taxes on the income. That bill could come years later and include a significant amount of penalties and interest.

Your best protection is a good bookkeeping system to record all the income you receive, and all the expenses you pay. That’s true whether you have a business, are a subcontractor, or just need to track your income and deductions for your income tax returns. In fact, keeping track of all of your income and expenses, whether taxable or not, will provide you with the information you need to make better informed decisions about your personal spending, saving, investing and retirement.

We are experts at recommending, setting up and using quite a number of good bookkeeping systems – not just QuickBooks. If you need any assistance, please give us a call. We’d be delighted to help!

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