An incorrect 1099 that overstates your income is a problem that can lead to a tax audit.
One big cause of an incorrect 1099 is the definition of what is 1099 income.
In many instances, the common fix to the incorrect 1099 is technically incorrect and that can cause distortions that lead to an IRS audit.
In this article, you will learn how the technically correct method does the following:
reduces your chances of an IRS audit,
grants the recipient their correct 1099 income, and
allows the payor the correct deduction.
I am a self-employed engineer. Last year I received three payments of $49,000 and one 1099-MISC for three jobs that ... Log in to view full article.