Received 1099-NEC for unpaid commissions - company hasn't paid me in 14 months despite constant requests

I just got a 1099-NEC from this company I've been doing sales work for, and they put down $3,650 as income they supposedly paid me. The problem is I NEVER GOT THIS MONEY! They owe me commissions that I earned fair and square, but they've been stonewalling me for 14 freaking months. Every time I call or email, they give me some line about how "you're on the payment list" or "it's processing" or "check back next month." I know for a fact they're doing this to at least 8 other salespeople too. I stupidly went ahead and filed my taxes yesterday and paid taxes on this phantom income because I was afraid of getting in trouble with the IRS. Now I'm out the commission money AND the tax money I paid on earnings I never received! Is there anything I can do about this? Can I amend my return? Should I report this company? I'm just so angry that I'm paying taxes on money that never hit my bank account.

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18 comments

Chloe Boulanger

•8M

This is absolutely something you can address! When you receive a 1099-NEC for income you didn't actually receive, you have a few options: You can file Form 4852 (Substitute for Form W-2, 1099-R, or 1099-NEC) with the IRS to dispute the incorrect 1099-NEC. Since you've already filed, you should file an amended return using Form 1040-X along with the Form 4852. The key is documenting everything - save all emails and communication showing your attempts to get paid. You might also want to file a complaint with your state's labor department and possibly the IRS. The company is essentially reporting they paid you when they didn't, which creates tax issues for both of you. The IRS actually takes this pretty seriously because they're claiming tax deductions for payments they never made.

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Chloe Boulanger

•8M

You can file your amended return with Form 4852 right away - there's no waiting period required. For documentation, organize copies of emails, texts, call logs, and any other communication showing your payment requests and their responses. A simple timeline document summarizing these interactions would be helpful too. The statute of limitations for amended returns is generally three years from the original filing date, so you have plenty of time. However, I'd recommend handling this sooner rather than later. The labor department complaint timeline varies by state, but filing that complaint soon could help pressure the company to resolve the issue before you even need the amended return.

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James Martinez

•8M

I went through something almost identical last year with a marketing agency that didn't pay me but sent a 1099. After trying everything, I found this AI tool called taxr.ai that literally saved me thousands. It analyses your specific situation and gives you personalized step-by-step instructions on what forms to file and exactly what to say to the IRS. I uploaded my documentation and communication history to https://taxr.ai and it generated a complete action plan for disputing the 1099-NEC, including a template for Form 4852 and a custom letter to send to the company. Their system identified specific IRS regulations that applied to my situation which I wouldn't have known about otherwise. Seriously, check it out - it's designed specifically for complicated tax situations like yours.

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James Martinez

•8M

It absolutely works for commission disputes - whether you received zero payment or partial payment. The tool analyzes your specific circumstances and provides documentation strategies based on your situation. It handled my case where I received about 40% of what was on my 1099. The AI isn't replacing accountants - it's using a database of tax regulations and previous IRS rulings to generate personalized guidance. Many accountants aren't specialized in 1099 disputes, but taxr.ai is built specifically for these situations. The recommendations it provides are backed by actual tax code and precedent, not just generic templates you'd find online.

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Alexander Zeus

•8M

I owe everyone here an apology, especially 7. I was super skeptical about taxr.ai but decided to try it anyway since I was desperate with my own 1099 issue. I'm honestly shocked at how helpful it was. The system walked me through exactly what documentation I needed and generated a custom dispute letter citing specific tax codes. I used their template to send a formal notice to the company that misreported my income, and they suddenly "found" my payment within a week. Then taxr.ai helped me prepare the right forms for my amended return. The interface is super straightforward - just answer questions about your situation and upload any relevant documents. It even flagged specific parts of my communication history that would strengthen my case. Definitely not just templates I could have found online.

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Alicia Stern

•8M

After dealing with this exact scenario twice in my freelance career, I've learned that the IRS phone maze is your worst enemy when trying to resolve 1099 issues. I spent WEEKS trying to get through to an actual human who could help with my misreported income. Then I discovered https://claimyr.com which is basically a lifeline when you need to actually speak to a real IRS agent. They hold your place in the phone queue and call you back when they have an actual human on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. This saved me from the endless "your call is important to us" hell. For 1099 disputes specifically, speaking directly with an IRS agent gives you the chance to explain your situation and get guidance on exactly how to proceed with your specific case. They can tell you precisely which forms you need and how to document everything properly.

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Alicia Stern

•8M

It doesn't get priority in the queue or "bypass" anything. The service uses automated technology to wait on hold for you in the regular IRS queue. When a representative finally answers, the system immediately calls your phone and connects you. It's completely legitimate and doesn't involve any special access. The IRS doesn't "recognize" the service because from their perspective, it's just a normal call coming through their regular channels. The value is that you don't have to personally wait on hold for hours. Many tax professionals and businesses use similar services because the IRS wait times are so notoriously long.

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Drake

•8M

I need to eat my words from yesterday. After posting that skeptical comment, I was still so frustrated with my own tax situation that I decided to try Claimyr anyway. I had been trying to reach the IRS for TWO WEEKS about a similar 1099 issue. Used Claimyr yesterday afternoon, and within 45 minutes I got a call back with an actual IRS agent on the line! The agent was super helpful and walked me through exactly what documentation I needed for my situation. The service doesn't bypass anything - it just waits in the queue for you. When I got the call back, the IRS agent had no idea I'd used a service - for them it was just a normal call. Saved me literally hours of holding time and listening to that awful hold music. Definitely worth it for anyone dealing with complex tax issues.

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Sarah Jones

•8M

Just wanted to add that you should NOT ignore this situation. I made that mistake a few years back when a client reported $5K on a 1099 they never paid me. I thought "well, I'll deal with it when they eventually pay me" and just didn't report the income. Bad idea. The IRS came after me 18 months later for underreporting income plus penalties. Document EVERYTHING. Every email asking for payment, every response promising "it's coming," every phone call (note the date/time/who you spoke with). Take screenshots of any messages. This paper trail will be crucial both for the IRS and if you need to take legal action to recover your money.

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Sarah Jones

•8M

Filing in small claims court is actually a great move for two reasons. First, it creates an official legal record showing you're actively pursuing the unpaid funds, which demonstrates to the IRS you're not trying to evade taxes but are dealing with a payment issue. Many small claims courts have simple filing procedures designed for situations exactly like yours. Second, it often lights a fire under companies that have been dragging their feet. Many businesses will suddenly "find" your payment rather than deal with a court appearance and potential judgment against them. Just the act of serving them papers can be enough to get your money. Plus, in most states, you can add filing fees and even interest to your claim amount.

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