How do I dispute a 1099-misc? A company that I worked for 4 years ago sent me a 1099 for what they claim is a debt that I owe them. I have disputed this debt since the first time they claimed that I owed it. It is even on my credit report as a disputed debt. How can they send a 1099 claiming that I now have this disputed debt as income?
State/Country relating to question: Texas
I have contacted the company and collection agency many times to no avail.
You may contact the IRS at(NNN) NNN-NNNNand tell them you have received an invalid 1099 form. They will send form 4598 to the employer requesting that the form be corrected. This of course does not guarantee that the firm will comply, but this should be your first step. The IRS will send you a copy of the form 4598 that they send to the company.
If the firm does not void the form, when you file your tax return you will need to attach a statement explaining why you excluded this 1099 from reporting on your return. You should also include a copy of the 4598 form to show the IRS that you requested a correction. Once your return is received, the IRS will continue to correspond with the company in an effort to obtain supporting evidence of whether or not the 1099 was issued legitimately. If the company cannot validate the amount they reported to you as income, then you should not have to pay tax on this amount.
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25+ years tax consulting. Specializing in returns for US citizens living abroad
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