A 1099 Tax form is an information form that every taxpayer receives which is not basically a tax document that you need to fill. If an organization or a business or any government-based entity sends you any amount of money during the ongoing tax year that is reported on your taxes, you will receive a Form 1099.
There are numerous kinds of 1099 forms that IRS consists of. For example, there is a form named 1099-DIV that informs the IRS that you have paid a certain amount of potential taxable dividend income; Form 1099-C states the cancellation of any debt taken, which is most of the times taxable, and Form 1099-MISC reports any payments made to the independent contractors. A couple of special situations that require Form 1099 but they all constitute payments that you may receive which is actually taxable.
Since the form 1099 you would have received is also reported IRS, this helps the government to know about your annual income even if you don’t include this on your returns. Once the IRS knows that you owe any additional tax on your 1099 income that is not reported, it will send you a notification and retroactively will charge with certain penalty charges along with the interest from our first date of payment to the till date.
Amending your 1099 filing return
If you realize that you have committed any mistake before the IRS notifies you, then with immediate effect you should amend your tax returns using a Form named Form 1040X, which is basically an Amended U.S. Individual Tax Return. Be assured to attach a copy of 1099 for them to understand that you did a mistake and are trying to rectify it with the amended return. You should also include any payment made for any tax that you currently owe. If you are waiting for any refund from your original return, you should wait until your IRS further notifies you or when you receive your refund, then initiate filling the Form 1040X.
Updating your self-employment Tax forms
If the 1099 form that you missed filing is for the income stats that you have received through any self-employment, and you have earned more than $400 during the ongoing year, you should definitely update or file the Form 1040SE, which basically includes your income based on your self-employment tax.
Most of the salaried personnel pay half of the tax based on Social Security on their annual income through the payroll withholding and the hirer pays the rest half; but if in case you are self-employed, you will both the employee and the employer and in such instances, you are liable to pay both the halves of the taxes. However, going forward you are eligible to claim a deduction from your one-half of the taxes that you have paid which is again based on certain approvals by the IRS. You can go through the terms and conditions and further assistance help available on the official website of IRS to know more about taxes and what to do if you IRS sends any notification to you for not filing your return appropriately.