What to do if a 1099 is wrong or missing

A plain guide to a wrong or missing Form 1099: ask the payer to correct it, report the income your records show, and explain any difference.

A Form 1099 is a tax form that a client or payment company sends to you and to the IRS. It shows what they paid you in the year.

Sometimes the amount is wrong. Sometimes the form never comes. In both cases, your own records decide what you report. The IRS compares the forms with your return, so you must be able to explain any difference.

The short version

If a 1099 is wrong, ask the payer for a corrected form.
Report the income your records show.
If your gross receipts are less than the total on your 1099-NEC forms, attach a statement that explains the difference (IRS).
If a 1099 never comes, report the income anyway. You must report all business income, including income not reported on a 1099 (Publication 334).
A 1099 from a company you never worked for can be a sign of identity theft.

Words to know

Payer: the client or company that paid you and sent the form.
Corrected 1099: a new form that the payer files to fix a mistake.
Cash method: you count income when you get it. See cash vs accrual accounting.
Constructive receipt: money counts as received when it is made available to you, even if you have not collected it yet.

First, look in your books

Many differences have a simple reason:

Timing. The client counts a payment when they send it. You count it when you get it.
Card or app payments. These go on Form 1099-K, not on a 1099-NEC (IRS).
Gross and net. A 1099-K shows the gross amount, before fees and refunds. See Form 1099-K explained.

On the cash method, a valid check you get by the end of the year is income that year, even if you cannot cash it until the next year (Publication 334). A check still in the mail on December 31 is not in your hands yet.

An example

Sam is a freelance photographer on the cash method. (He is an example, not a real person.) In January 2027 a client sends him a Form 1099-NEC that shows $8,500 for 2026. Sam’s books show $7,000.

Item	Amount
1099-NEC from the client	$8,500
Sam’s records for 2026	$7,000
Difference	$1,500

Sam finds the $1,500 fast. The client mailed a check on December 30, 2026. It reached Sam on January 4, 2027. So it is 2027 income for Sam.

The form is not wrong from the client’s side. Sam reports $7,000 for 2026 and attaches a short statement: “Form 1099-NEC from the client shows $8,500. $1,500 was a check mailed December 30, 2026 and received January 4, 2027. It is reported as 2027 income.” He keeps a note of the date he got the check.

When the form really is wrong

Contact the payer. Their name and phone number are on the form. Ask for a corrected 1099.
Keep everything: the first form, any corrected form, and your messages.
File on time with the figures from your records. Attach a statement for any difference.
If a corrected form comes later and changes something, check if you must amend your return.

For a wrong Form 1099-K, contact the company that sent it. If you cannot get a correction, there is a set way to show the error on Schedule 1 (IRS).

A 1099 from a stranger

If you get a 1099 from a company you never worked for, someone may have used your Social Security number. The IRS says not to include that income on your return and not to file an amended return. Contact the Social Security Administration to check your earnings record (IRS).

A Righto tip

The slow part is finding every payment from one client. Righto imports your bank statements (CSV, OFX or PDF), so every deposit is in your books with its date. You can also ask your own AI agent, such as Claude Code, what one client paid you in 2026 and when each payment came in. See how agents work with Righto.

Common questions

Can I file before the corrected 1099 comes? Yes. File on time with the figures from your records, and keep proof of the difference.

A client did not send me a 1099. Is the income still taxable? Yes. Business income is reportable with or without a form.

The 1099 shows my old address. Do I need a new one? Usually not, if the name, tax ID number and amount are right. Give the payer your new address for next year.

What to do now

Put each 1099 next to your records for that payer and that year.
Mark the ones that match.
For each one that does not, look for the reason in your books first.
Contact the payer only about the ones you cannot explain.
File on time, with a short statement for each difference.

Righto is free, easy to use and needs no account.

Sources

Righto gives general information, not tax or legal advice. Ask a tax professional about your business.