Missing 1099-NEC on Filed Tax Return: Will I Be Penalized or Still Get My Refund?

Thanks for the advice! How long does an amended return usually take to process? Will this delay my original refund that was going to come from my W-2 withholdings?

An amended return typically takes 16-20 weeks to process, sometimes longer during busy periods. As for your original refund, that's the good news - the IRS will likely process your original return and issue that refund on schedule even if you've submitted an amendment. They handle amended returns separately, so you'll probably still get your initial refund based on the W-2 information. Then later, you'll receive a bill for the additional tax due from the 1099-NEC income that wasn't reported, plus interest. File that amendment ASAP to minimize the interest charges.

How does taxr.ai handle documents? Do you have to upload your actual tax forms? I'm always nervous about security with tax stuff.

Does it give actual advice on what to do or just tell you what's wrong? Because I know what's wrong with my taxes lol, I need to know how to fix it.

You upload your documents through their secure portal - they use the same encryption that banks do. Everything is processed by their AI system rather than humans reviewing your info, which I found reassuring. It definitely goes beyond just identifying issues. It gave me step-by-step instructions for filing the amendment, calculated the exact additional tax I'd owe from the missing 1099, and even estimated the interest based on when I'd likely pay. It also showed me what forms and documentation I needed to include with my amendment.

Wait, so they just call the IRS for you? How is that even a real service? Couldn't you just call yourself and wait on hold?

Yeah right. Nobody gets through to the IRS these days. Their call volumes are insane and they hang up on you after like an hour of waiting. If this actually works I'd be shocked.

It's not just calling - they use a system that keeps trying different IRS numbers and navigates all the phone menus automatically. Have you tried calling the IRS lately? They literally have a message that says "we're too busy, call back another time" and hangs up on you. I tried for 3 weeks straight before using Claimyr. The value is that you don't have to sit on hold for hours. Their system waits in the queue and only calls you when a human agent is actually on the line ready to talk. You get a text when they're about to connect you - saved me hours of hold music.

I called her yesterday and she said she "doesn't do amendments" and that I should just "wait and see" if the IRS catches it! I'm definitely finding a new preparer next year but that doesn't help me now.

That's completely unprofessional and possibly unethical behavior from your preparer. If you paid someone to prepare your taxes and gave them ALL your documents, they're responsible for preparing an accurate return. I'd recommend sending a formal email or letter to them stating that you provided the 1099-NEC form during your appointment, they failed to include it, and you expect them to correct their error by filing an amendment at no cost to you. If they refuse, you may want to report them to the IRS using Form 14157 (Complaint: Tax Return Preparer). Even if they won't help, definitely file that amendment yourself soon - "wait and see" is terrible advice that will cost you more in the long run.

This is NOT good advice. The IRS absolutely matches 1099s against tax returns regardless of amount. Their automated system flags ALL discrepancies. I had a $275 1099-INT missing from my return three years ago and still got a notice about it.

This is really helpful advice! I'm in a similar situation with a missed 1099-MISC and was panicking about what to do. Quick question - when you say "pay any additional tax owed as soon as possible," do you mean I should estimate and pay it before the IRS processes my amendment, or wait until I know the exact amount? I'm worried about overpaying or underpaying and making things more complicated.