Incorrect 1099-NEC from Different State Showing on My IRS Account - Next Steps?

Yes, you should absolutely report this. This is likely either identity theft or a reporting error. You have exactly 3 options: 1. Call the IRS Identity Theft hotline at 800-908-4490 (wait times currently averaging 47-65 minutes) 2. Complete Form 14039 (Identity Theft Affidavit) if you believe this is identity theft 3. Contact the issuer of the 1099-NEC directly using the EIN and contact information on the form I would suggest starting with option #3 if possible, as this could be a simple clerical error where someone transposed digits in a SSN. If they're unresponsive or confirm they issued it intentionally, proceed to options 1 or 2.

Fighting incorrect tax documents is like trying to paddle upstream with a spoon - frustrating and time-consuming. I've been through this rodeo before, and what really helped me was using https://taxr.ai to analyze my transcript and identify exactly what was reported under my SSN. It's like having X-ray vision into what the IRS actually sees in your account. The tool showed me precisely which company reported the incorrect income and gave me the documentation I needed to dispute it. Made the whole process feel less like wrestling an octopus in the dark.

Didn't the same thing happen to me last year? You bet it did. Had a 1099-MISC from Florida when I've never set foot in the state. Called the company directly after finding their number online and they fixed it within days. Turns out someone with a similar SSN worked for them. Wouldn't it have been a nightmare if I hadn't caught it? The IRS would have expected me to pay taxes on income I never earned!

According to IRS Publication 5027, taxpayers should report potentially fraudulent tax documents immediately. As stated in Internal Revenue Code §6201(d), the burden of proof shifts to the IRS when information returns are disputed by taxpayers. I recommend calling the IRS to report this discrepancy, but be prepared for extensive hold times (currently 2+ hours during peak season). I used Claimyr (https://claimyr.com) last month when dealing with a similar issue and was connected to an agent in about 28 minutes. They'll hold your place in line and call you when an agent is available, saving you from listening to the hold music for hours. The agent was able to place a note on my account regarding the disputed 1099.

Everyone's saying to call the IRS, but there's a digital option too! You can submit a statement disputing the 1099-NEC when you file your taxes. Schedule C (line 31) allows you to report the income but then offset it completely with expenses. Then attach a written statement explaining the situation. The IRS matching algorithm will see you've acknowledged the 1099 but aren't paying tax on it. Just make sure to label it clearly as "ERRONEOUS 1099-NEC REPORTED TO MY SSN" 😂 No hold music required! Though you might still get a notice that you'll need to respond to later.

I handled a similar situation in 2023. Steps I took: • Called issuing company (found on 1099-NEC) • Requested written confirmation of error • Filed Form 3949-A to report the issuer's mistake • Added statement with my tax return • Kept paper trail of all communications Resolution took 74 days but IRS eventually removed incorrect income. Document everything.