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How were you paid for the services all this time?
In that case, you are not required to pay tax on the Form 1099 income that you never received. Form 1099 Misc income will be taxable to you only if you received it presuming that you are a tax basis taxpayer.
You received W-2 from the employer and that has been reported by you on the tax return.
Did you receive a Form 1099 from any of the payors....but the amounts reported on the Form 1099 were received by the hospital on your behalf? How was the clinic organized? were you a partner or a stockholder of the clinic?
You will have to request the information from the hospital regarding the bank account where the checks were cleared. Also, you will have to contact the Clinic and inform them regarding the IRS issues that you are having. This 1099 income would have been recorded in the Clinic's tax return. DO you have the EIN# XXXXX the Clinic and information on how the clinic was organized(S Corp, partnership or so on).
I will also suggest you to amend the tax return and report this Form 1099 income on Sch C and than record the entire amount as a deduction on Other expenses column on Sch C and write a note that these amounts were received and deposited by the Clinic and should be on Clinic's tax return. This will cause your tax return to match to the information that IRS has and also will not increase your tax liability.
Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
Do you have the EIN# XXXXX the clinic?
I had also included in the post that you may want to amend your tax return and report the Form 1099 income on Sch C and write it off as an expense with teh EIN# XXXXX the clinic from where you received your Form W-2.
IRS may not accept this but it will establish your position that you did not receive it and that as per the contract that you had signed with the hospital, these monies were received by the clinic and you were give a W-2 from the clinic.
You may also need to contact a tax advocate and try to seek their help in resolving this issue. link to the tax advocate-