The IRS 1099 form is designed for reporting any extra income. It’s linked directly with your social security number. In most cases, the reason you haven’t received your 1099 yet is because it simply hasn’t been issued. The IRS computers have a record of which forms have been sent and which haven’t.
There are a number of key reasons you should never ask for this form yourself.
If you ask for a form, the chances are you are going to receive two forms. This is because the ordinary form will have arrived, and the form you asked for will follow soon after. The IRS will now believe you have twice the income that you actually have.
This is going to lead to some awkward questions later.
You Don’t Need One
In many cases, you simply don’t need one. A common mistake is asking for one of these forms for a lawsuit recovery. This doesn’t count as any extra income. It counts as ordinary income, so you don’t need one. The IRS rarely makes mistakes; so don’t assume they have made one.
Extra Income You Don’t Have
Should you ask for a 1099 form you don’t need, you are going to run into a situation where the IRS believes you are hiding part of your income. Once they send out one of these forms, they demand to have it back and filled in. If their computers say that this didn’t happen, they are likely to conduct an audit.
In short, let things take their natural course. Don’t ask for a 1099 form.
Image credit: Philippe Put