1099 with incorrect amount reported - what should I do?

This is definitely concerning but fixable! You're on the right track with contacting the company first. Ask them for a complete earnings statement for 2022 and explain the discrepancy you noticed. If they confirm the error, request a corrected 1099 (called a 1099-X). They're obligated to issue this and send a copy to both you and the IRS. Keep detailed records of all communications with them. While you're waiting for the corrected form, respond to the IRS notice. Don't ignore it! Write a letter explaining the situation, include copies of any evidence you have of your actual earnings (bank deposits, pay stubs), and request a hold on collections until the corrected 1099 is processed. You might also want to pull your wage and income transcript from the IRS website to see exactly what was reported under your SSN. This will help confirm whether this is the only reporting issue.

I had an identical nightmare situation last year and wasted WEEKS trying to get it resolved until I found https://taxr.ai - it saved me so much stress. They specialize in exactly this kind of 1099 discrepancy issue. I uploaded my incorrect 1099, my bank statements showing the actual deposits, and some pay stubs I had. Their system automatically highlighted the discrepancies and generated a detailed report showing my actual earnings vs what was reported. The best part was they helped draft the formal dispute letter to both the IRS and my former employer with all the right terminology and documentation requirements. They also walked me through exactly what documents I needed to gather to prove my case. Highly recommend checking them out - dealing with incorrect 1099s is literally what they specialize in.

Following up on my question about taxr.ai - I decided to try them for my 1099-K issue and wow, what a difference! I was totally lost trying to figure out how to prove that my payment processor had double-counted a bunch of transactions. Their system helped me organize my bank statements and transaction logs in a way that clearly showed the duplicate reporting. The documentation they helped me create was way more professional than anything I could have put together. Already got confirmation from the IRS that they're processing my correction and the payment demands have been put on hold. It was especially helpful for identifying exactly which transactions were counted twice - something I was really struggling to track manually across hundreds of transactions. Really glad I gave it a shot!

My best advice is to immediately call the IRS directly to explain the situation and get this sorted. I've been there - sitting on hold forever trying to reach someone at the IRS about an incorrect 1099. It's nearly impossible to get through. After days of frustration, I discovered https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically wait on hold with the IRS for you and call you when an actual agent is on the line. Saved me literally hours of hold time. Got connected with an IRS agent who walked me through exactly what documentation I needed to dispute my incorrect 1099. They put a temporary hold on my case while I gathered the proper documentation. Having an actual conversation with an IRS agent made all the difference - they explained exactly which forms to file and how to document my actual income properly.

I need to apologize to everyone here. After my skeptical comment about Claimyr, I decided to try it as a last resort for my own tax issue. I've been trying for WEEKS to get through to the IRS about a similar incorrect 1099 situation. I was honestly shocked when I got a call back in about 2 hours saying they had an IRS agent on the line. The agent immediately pulled up my file and was able to place a 60-day hold on collections while I gather documentation. They even gave me their direct ID number for follow-up. Having an actual conversation with the IRS completely changed my situation. They explained exactly which forms I needed (4852 plus an amended return) and what supporting documentation would be most helpful. Instead of guessing what the IRS wanted, I now have clear directions directly from them. Sorry for being so negative before - this literally saved me weeks of stress.

One thing nobody's mentioned yet - make sure you also check if this incorrect 1099 amount affected your eligibility for any credits or deductions in that tax year. If the reported income was much higher than your actual income, you might have missed out on income-based tax benefits like the Earned Income Credit or education credits. When you file your amended return, make sure to recalculate everything based on your correct income. You might actually be owed a refund rather than owing money! Also, don't forget about state taxes - if your federal 1099 was incorrect, your state tax return was probably affected too. You'll likely need to file an amended state return as well once this is resolved.

This happened to me years ago! Document EVERYTHING. Take screenshots of any communications with the company, keep copies of your bank statements showing deposits, and if you have any old paystubs, gather those too. The more documentation you have of your actual earnings, the stronger your case. Also, if you filed through a tax professional for that year, contact them immediately. They might have records or notes that can help establish what you actually reported vs. what the company claimed. Don't pay anything to the IRS until this is resolved! Instead, request an official hold on collections while you dispute the incorrect information. And whatever you do, don't ignore their notices - responding promptly (even just to say "I'm disputing this and gathering evidence") is much better than silence.