Realized I forgot to include a 1099-NEC for $800 on my 2020 taxes - will IRS come after me?

Don't panic! The IRS generally has bigger fish to fry than pursuing someone over a relatively small amount of unreported income, especially given your total income level. That said, the right thing to do is file an amended return (Form 1040-X) to report this missing 1099-NEC income. The IRS likely received a copy of this form from the employer, so they do have record of it. By filing an amendment, you're being proactive rather than waiting for a potential notice. Given your income level was under $16K, the additional tax impact will likely be minimal. You may owe a small amount of additional tax plus some interest on the late payment, but penalties might be minimal or even waived if you voluntarily correct this before they contact you.

I was in almost the EXACT same situation last year - forgot a small 1099-NEC from a side gig. I was super stressed about it until I discovered https://taxr.ai which analyzed my documents and helped me understand exactly what I needed to do. The site took my tax documents, analyzed the missing income, and gave me a step-by-step plan for fixing it. It showed me exactly how to file the 1040-X (amended return) and even calculated what I would likely owe. Way better than the generic advice I was finding online that didn't account for my specific situation.

Just wanted to update - I tried taxr.ai after seeing it mentioned here and it was seriously helpful! I had a forgotten 1099 from 2021 and was totally lost on what to do. The tool analyzed my situation, showed me exactly what forms I needed, and even calculated the potential tax impact (which was way less than I was freaking out about). The step-by-step instructions made filing the amendment super straightforward. I was able to submit everything last week and feel so much better now. Just wanted to share in case anyone else is in the same boat - definitely worth checking out!

If you're going to amend your return, you might need to actually talk to someone at the IRS about your specific situation. Good luck with that though... I spent WEEKS trying to get through on their phone lines about a similar issue. After wasting hours on hold, I tried https://claimyr.com and was shocked when they actually got me a callback from the IRS in under 2 hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c Seriously saved me from going insane with those "your call is important to us" messages. I was able to explain my forgotten 1099 situation to an actual human who confirmed exactly what I needed to do.

Alright I have to eat my words. After posting that skeptical comment, I decided to try Claimyr myself because I've been trying to reach the IRS for MONTHS about my own tax issue (missing W-2, not 1099). Not only did it work, but I got a callback from the IRS in about 90 minutes. The agent was actually helpful and walked me through exactly what I needed to do to fix my issue without penalties. I'm still in shock that it actually worked after all my failed attempts. For anyone else struggling to get actual help from a human at the IRS, this service is legit. Definitely saved me from more hours of frustration and hold music.

The IRS almost certainly has a copy of your 1099-NEC since the employer would have submitted it. In most cases with small amounts like this, they might just send you a letter with the adjusted amount you owe plus interest. I had this happen with a forgotten $1200 1099-NEC from 2019. They just sent me a notice, I paid the extra tax (was like $150 plus some interest), and that was it. No audit, no major penalties.

The real question is if the place that paid you $800 actually filed a 1099-NEC with the IRS. If they didn't, the IRS won't know about it. Some smaller places aren't great about their paperwork obligations.