Received late 1099 request after filing my taxes - what do I need to do?

You should be fine! The good news is you already reported the income on your tax return, which is the most important thing. The IRS mainly cares that you paid taxes on all your earnings. Since you recorded it as self-employment income on Schedule C, that's actually the correct way to report it, regardless of whether you receive a 1099 or not. The 1099-NEC (which replaced 1099-MISC for this purpose) is just an information return that tells the IRS about the payment, but it doesn't change how you should report it. Go ahead and fill out the W9 for your friend's bookkeeper. They'll likely issue you a 1099-NEC now (even though it's late), and the IRS will eventually match that to your return. Since the income amount is already included in your filed return, there shouldn't be any discrepancy that would trigger issues.

I had almost the exact same situation last year with my side gig editing wedding videos. I was freaking out about potentially getting in trouble with the IRS until I discovered taxr.ai (https://taxr.ai). It's this new AI tool that analyzes your tax situation and explains exactly what to do with specific IRS guidance. I uploaded the late 1099 request email and my tax transcript, and it confirmed I didn't need to amend since I'd already reported the income. It also gave me language to use with the company that was late sending the 1099 to make sure they filed it correctly. Saved me from doing an unnecessary amendment that would have cost me another $150 with my accountant!

Update on my experience with taxr.ai - I decided to try it with my complicated tax situation after asking about it here. Honestly blown away by how helpful it was! I uploaded my previous return, some 1099s that came late, and a bunch of crypto statements. The analysis pinpointed three deductions I missed and confirmed I didn't need to amend for the late 1099s since I'd already reported the income accurately. It even found a mistake in how my rental property depreciation was calculated. Ended up saving me over $1,800 in taxes by filing an amendment for the missed deductions, but avoiding unnecessary amendments for the late forms. Definitely recommend checking it out if you're dealing with confusing tax situations like this!

If you're worried about potential issues with the IRS down the road, you might want to check out Claimyr (https://claimyr.com). I used it after dealing with a similar late 1099 situation that eventually resulted in a mismatch letter from the IRS. Instead of waiting on hold for 3+ hours, Claimyr got me connected to an actual IRS agent in about 15 minutes. They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when an agent picks up. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed exactly what to do about the late 1099 and noted it in my file to prevent future issues. Seriously, talking to an actual IRS person made all the difference in getting this resolved correctly.

I have to apologize and eat my words here. After dismissing Claimyr in my earlier comment, I was still desperate to talk to someone at the IRS about my own issues with multiple missing 1099s, so I broke down and tried it. I'm honestly shocked that it actually worked exactly as advertised. I put in my request around 8:30am, went to a meeting, and by 10am I got a call connecting me to an actual IRS representative. Explained my situation with the missing/late forms, and she confirmed I didn't need to amend since I'd reported all the income accurately. She even added notes to my account about the late-filed 1099s to prevent automated notices. Never been so happy to be wrong about something. Saved me from taking a whole day off work to sit on hold.

Something similar happened to me but I DID get a CP2000 notice because the amounts didn't match exactly. The company rounded up the payment to $3000 on the 1099 when they actually paid me $2985. Because I reported the exact amount I received, the IRS computer flagged it. It wasn't a huge deal but took some time to resolve. I recommend double checking with your friend exactly what amount they're reporting on the 1099 they file. If it's not exactly the $2700 you reported, you might want to consider amending your return to match their reporting just to avoid the hassle of dealing with an IRS notice later.

Just a heads up - make sure they're filing the right form. For services, they should file a 1099-NEC (non-employee compensation) NOT a 1099-MISC which is now used for other types of payments. I've seen companies mess this up and it causes matching problems with the IRS systems.

You're in good shape since you already reported the income correctly! The key thing is that you included that $2,700 as self-employment income on Schedule C, which is exactly what you should have done regardless of whether you received a 1099 form or not. When you fill out the W9 for your friend's bookkeeper, they'll likely issue you a 1099-NEC (the correct form for freelance services). The IRS will eventually match this against your filed return, but since you already reported the income, there shouldn't be any issues. Just make sure when you give them the W9 that you confirm they're reporting the exact amount you were paid ($2,700) and that they're using the correct 1099-NEC form rather than the older 1099-MISC. Small discrepancies in amounts or wrong form types can sometimes trigger automated notices, but since you were proactive about reporting the income, you should be fine. The fact that they're late with the 1099 is their problem, not yours - you did everything right by reporting the income when you filed.