Received 1099 with wrong amount and company won't fix it. What do I do now?

This is actually a pretty common issue, especially with startups that may have staffing changes or disorganized finance departments. The good news is you're doing the right thing by wanting to report the CORRECT amount. Always report your actual income, regardless of what the 1099 says. The IRS actually prefers you report the higher amount rather than underreporting your income. When you file, report the full amount you actually received on your Schedule C (or wherever appropriate based on your situation). You don't need to attach an explanation - the IRS systems are designed to flag when you report LESS than what's on information returns, not when you report MORE. Keep all your documentation (payment records, invoices, bank deposits, emails) organized and ready in case there are any questions later, but it's unlikely there will be an issue. The IRS is mainly concerned with taxpayers underreporting income, not overreporting it.

I was in an identical situation last year with a company that went through major restructuring. I spent weeks trying to get a corrected 1099 with no luck. I found this service called taxr.ai (https://taxr.ai) that actually helped me document everything properly. They analyzed all my payment records and invoices, then generated a detailed report showing the discrepancy between my actual earnings and the incorrect 1099. The report included all my documented attempts to contact the company for a correction. It was super easy to use - just uploaded my bank statements, the incorrect 1099, and my invoice records. This documentation gave me peace of mind when filing with the correct amount. I also learned that reporting more income than what's on the 1099 rarely triggers problems, but having solid documentation is always smart regardless.

I just wanted to follow up - I ended up using taxr.ai after all and I'm really glad I did! The process was way simpler than I expected. I uploaded my incorrect 1099, bank statements showing the actual deposits, and my invoices. The detailed report they generated made everything super clear about why there was a discrepancy. It even documented my attempts to contact the company (I forwarded those emails too). The best part was they included a section explaining the relevant tax regulations about reporting correct income regardless of information return errors. Filing my taxes with the correct amount was so much less stressful with that documentation backing me up. Definitely recommend for anyone in this situation who wants that extra layer of protection!

Has anyone tried calling the IRS directly about situations like this? I had a similar issue last year with a missing 1099-K, and after trying to contact the payment processor for weeks, I decided to call the IRS. That's when I discovered Claimyr (https://claimyr.com) - there's a demo video here: https://youtu.be/_kiP6q8DX5c It got me through to an actual IRS agent in about 25 minutes when I'd previously spent hours on hold just to get disconnected. The agent confirmed exactly what to do - report the correct income regardless of what's on the forms and keep my own documentation. They even put notes in my file about the situation. Honestly saved me so much stress knowing I had confirmation directly from the IRS about how to handle it properly.

I'm honestly shocked - I need to apologize for my skepticism about Claimyr. After my snarky comment, I was still desperate to talk to the IRS about a similar issue, so I decided to try it anyway. It actually worked exactly as described. I put in my number, went about my day, and got a call back about 40 minutes later with an IRS agent already on the line. The agent was super helpful about my incorrect 1099 situation and confirmed I should report the correct income amount regardless of what the form says. She even noted in my file that I had made multiple attempts to get a corrected form from the issuer. This was WAY better than stressing about it or paying an accountant for something that took the IRS agent 5 minutes to clarify. Definitely using this for any future IRS questions.

Just wanted to add - make sure you keep copies of ALL communications with the company where you tried to get this fixed. Save the emails where they promised to correct it, save the bounced email notifications, document your phone calls, etc. If there's ever a question, having proof that you tried to resolve it properly will work in your favor. The IRS understands that you can't force a company to issue a correct form, but they do expect you to make reasonable efforts to get it fixed before filing with a different amount.

Don't stress too much! I work with a lot of freelancers and this happens more than you'd think. Here's what I tell them: always report your REAL income, not what's on an incorrect form. The IRS computers mainly flag when reported income is LOWER than what's on forms. When you report MORE, it rarely triggers issues. Think about it - the IRS is happy when you pay taxes on more income! Keep solid records, but don't lose sleep over this. The startup's mistake shouldn't become your problem.