1099 Information on Past Due Returns, Causes the IRS to Take a Closer Look

The IRS reported on it's web site that taxpayers continue to file past due returns with incorrect 1099-MISC on the return.

A Form 1099-MISC is used to report payments made to a person/business from a trade or business for services or work performed.

The 1099-MISC form is filed by the payer with the IRS and a copy is sent to the person or business receiving the payment. Unlike a W-2, there is no federal income tax, Social Security tax or Medicare tax withheld. The person or business receiving the payment is responsible for paying all taxes.

When a taxpayer files his/her past due returns, without the 1099-MISC income, it will create an audit. Usually it will only be a paper audit, however, it can become much more than that.

It is important to include ALL necessary information on past due returns, so as not to bring more attention than is necessary to the fact that you are filing late.

You can contact the IRS and ask for a copy of your income for the years that you must file, or you can hire an online tax service, such as ourselves, to file a past due return. (affordable fee based service)