Newsbreak: Last Call for Tax Forms – What to Do if You Haven’t Received Your 1099s Before Tax Day

Tax season has arrived, and with Tax Day set for April 18, 2023, it is time to start gathering the necessary paperwork. According to the law, 1099 forms for independent contractors must be delivered or distributed electronically by January 31. The same applies to 1099-K forms, which show earned interest and other income, along with W-2 forms.

If you haven’t received your forms, the first step is to check your spam or other folders. If it is not there, reach out to the company that paid you and ask if they have sent it. If you haven’t received the form by the end of February, the IRS can provide a substitute for Form 4852. However, requesting this form should only be done as a last resort, as there are penalties for late forms that can reach up to $1.5 million, as reported by Dawn Allcot of GOBankingRates on February 3, 2023.

For 1099-independent contractors, it is possible to report the income without a 1099 or a substitute form. If your 1099 arrives with different information than your estimates, you can file an amended return using Form 1040-X. If your client never filed the 1099 form, you will still need to pay taxes on that income.

Based on the official website of the IRS on January 9, 2023, if you’re unsure about how much income you earned, you can check bank statements, pay stubs, or request an IRS transcript. Be aware of penalties for missing 1099 deadlines; large businesses face penalties starting at $50 per statement up to a limit of $3.3 million.