Are You Responsible for Incorrect Tax Documents Sent to You?
Hudson, NH Resident Find a Big Mistake
You should not take for granted that all of the paperwork that you receive for your taxes is correct. This includes a W2 issued by the employer and Form 1099s for those that are self-employed or gig workers. Mistakes made on these forms can happen due to human error. If this isn’t caught, and corrected, prior to filing your taxes you may be hit with an IRS audit. If you receive an incorrect tax form, you will need to contact the issuer of the form regarding the mistake. You can request a corrected form be sent to you, making sure the “corrected” box is checked so that the IRS knows that this is an amended form. Waiting too long or failing to request this correct documentation can put you at risk in the future.
If you are unable to get a corrected copy, you can contact the IRS regarding the problem. There are several forms that can be submitted in this scenario that will allow you to account for any incorrect documentation that you received. However, the first course of action will be to request the revised form from the issuer.
A self-employed Hudson resident received a Form 1099 from one of her clients. Upon inspection, she realized that the compensation field was incorrect. The difference was significant. She was concerned about how to handle the situation and sought the expertise of Merrimack Tax Associates.
Filing an Amended Return if the Mistake is Realized Too Late
Ideally you will catch any mistakes right away, prior to filing your tax return. Requesting and receiving a corrected form can eliminate any problems in the future. However, if you have already filed your taxes and the problem is caught later, you will want to file an amended tax return with the correct numbers. Being proactive about the matter will help to reduce the risk of an audit down the road.
The Hudson resident was able to receive a corrected document from the issuing company, reducing the chances of her tax return being flagged by the IRS.