My employer submitted my 1099-NEC to the IRS late - will this delay my tax refund?

This happens more often than you'd think! When an employer submits a 1099-NEC late, it creates a timing mismatch in the IRS systems. You've already filed using information that the IRS hasn't processed yet, which triggers their verification process. The letter you received is likely a CP2000 notice or something similar, asking you to verify income. You don't need to wait for your client's 1099-NEC to be accepted before responding. Instead, you should respond to the letter promptly with a copy of the 1099-NEC you received, along with any additional documentation showing when you received it. The IRS mainly wants to confirm that the income you reported matches what they'll eventually receive from your client. Since you have the 1099-NEC in hand and reported it correctly, you're in good shape - it's just a matter of verifying the information for them.

I went through almost the exact same situation last year! I was stuck in verification hell for weeks until I discovered taxr.ai (https://taxr.ai). It's this service that helps analyze tax documents and IRS notices. I uploaded my 1099-NEC and the IRS letter, and they gave me step-by-step instructions on how to respond properly. The best part was they confirmed exactly what information the IRS was trying to verify, which turned out to be just the income amount and not a full audit like I was terrified about. They even generated a response letter template that I could customize. Saved me so much stress and probably weeks of waiting!

Alright, I need to eat my words. After my skeptical comment, I decided to try taxr.ai myself since I was dealing with my own tax notice (different issue, but still confusing). It actually provided surprisingly specific guidance based on the exact notice code and the details in my documents. The system identified that I needed to provide additional documentation for a deduction the IRS was questioning - something I wouldn't have known to include. Just got confirmation yesterday that my response was accepted and my refund is being processed. Saved me from having to pay for an actual tax pro, which would have cost way more given how straightforward the issue actually was once properly explained.

Have you tried contacting the IRS directly? I was in the same boat last year and spent WEEKS trying to get through to a human at the IRS. Kept getting disconnected or would wait on hold for hours only to have the call drop. Finally discovered Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They basically wait on hold with the IRS for you and call when they get a human on the line. I was super hesitant but desperate at that point. Got connected to an actual IRS agent who explained exactly what was happening with my return and what I needed to do. Turns out my employer had submitted incorrect information initially and then corrected it, which caused the whole mess. The agent processed my verification while I was on the call and released my refund!

Well, I stand corrected. After my skeptical comment, my tax situation got worse (got a second notice from the IRS), and I was desperate. Decided to try Claimyr as a last resort. Honestly, it worked exactly as advertised. Got a text when they reached an agent and was connected within seconds. The IRS person I spoke with was actually super helpful once I finally got through. Explained that there was a mismatch between what I reported and what they had on file because my employer submitted a correction. Got everything resolved in one 20-minute call instead of the weeks of stress and uncertainty I was facing. Would still prefer if our tax system wasn't so dysfunctional that we need services like this, but given the reality we're in, I'm glad it exists.

One thing nobody's mentioned yet - check your wage and income transcript on the IRS website if you have an account. You can see exactly what forms have been processed under your SSN. If your 1099-NEC isn't showing up there yet, that confirms the issue is the late filing by your client. Honestly though, this isn't that uncommon. My husband gets 1099s from several clients and there's always at least one who files late. We just make sure to report everything accurately on our return regardless of when they get around to filing their forms.

Might be worth asking your client to contact the IRS on their end to confirm the 1099-NEC was submitted correctly. Sometimes businesses think they've completed the process but actually missed a step. Had this happen with a small business client of mine last year - they thought they'd filed everything but it turned out their tax software had saved the forms as "pending" instead of actually submitting them. Caused a huge headache for their contractors.

Just went through this exact scenario two months ago! The key thing to remember is that your filing is correct - you reported the income you received, which is what matters. The IRS verification letter is just their way of reconciling their records when there's a timing mismatch. A few practical tips from my experience: 1) Respond to the letter within the timeframe they specify (usually 30 days), 2) Include a copy of the 1099-NEC you received along with a brief explanation that your client filed late, and 3) Keep copies of all your correspondence. The refund delay is frustrating but typically resolves within 6-8 weeks once they receive your response. I actually called the IRS after responding and they confirmed my documentation was sufficient - they just needed to match it against what they eventually received from my client. Don't stress too much about it, this is more common than you'd think with small businesses and independent contractors.