Quick overview

If a 1099 you expected never arrives, the IRS still expects you to report your full taxable income. The steps below help you document earnings, make a timely filing, and reduce the chance of penalties or a later IRS adjustment.

Why missing 1099s matter

Payers are required to send information returns so the IRS can match amounts reported by payers with amounts taxpayers report. When a payer omits a 1099, the IRS may still become aware of the payment (for example, through the payer’s tax return or bank records) and issue a notice for unreported income. Reporting accurately up front avoids interest, late-payment penalties, and collection notices.

(IRS: About Form 1099 and correction procedures — see IRS.gov for details.)

Step-by-step action plan

Below is a practical process I use in my CPA practice when clients tell me they never received a 1099.

  1. Gather your records first (bank deposits, invoices, contracts)
  • Collect bank statements, PayPal/Stripe/processor reports, cleared checks, invoices, and e‑mail confirmations of payment. These are primary evidence of income.
  • Reconcile each payer’s totals to your own ledgers or accounting software.
  1. Contact the payer promptly
  • Call or email the company or individual who paid you and ask whether they issued a 1099 and, if so, when and to what address/email. Many misses are simple clerical errors (wrong SSN/EIN, wrong address, or an internal mailing delay).
  • If they confirm they didn’t issue one, ask them to issue or reissue the appropriate 1099 (NEC, MISC, INT, etc.). If they say they will not issue one, get a written explanation for your records.
  1. Don’t wait to file your return
  • You must report all taxable income by your return due date even if a payer hasn’t furnished a 1099. For self‑employment earnings, report on Schedule C and pay self‑employment tax on Schedule SE as applicable.
  • Use your documentation (bank records, invoices) to compute the correct income. Attach a concise explanation to your return if you anticipate a mismatch that might trigger an IRS letter.
  1. Use Form 4852 only when appropriate
  • Form 4852 (Substitute for Form W‑2 or Form 1099‑R) is intended primarily as a last‑resort substitute for a missing W‑2 or 1099‑R. It is NOT generally used for all other types of 1099s. For non‑W‑2/1099‑R pay types (for example, 1099‑NEC or 1099‑MISC), rely on your records and report the income on the appropriate schedules.
  • If you incorrectly use Form 4852 for other 1099 types, that can slow processing. When in doubt, consult a tax pro or the IRS instructions for Form 4852.
  1. If you still can’t get the payer to cooperate, contact the IRS
  • If you have tried to contact the payer by mid‑February and they have not supplied a payee statement, the IRS previously advised taxpayers to call the help line to report missing forms. The IRS can follow up with the payer to encourage filing.
  • When you call the IRS, be ready with payer’s name, address, telephone number, EIN or SSN (if known), and an estimate of the amounts.
  1. If you later receive a 1099 that differs from what you reported
  • Don’t panic. If the payer files a corrected 1099 after you file, the IRS may send a notice (for example, an information‑return mismatch notice). Compare the corrected 1099 to your records and, if necessary, file an amended return (Form 1040‑X) to reconcile differences.
  1. Respond promptly to IRS notices
  • If you receive a notice proposing additional tax (commonly a CP2000 or similar), respond within the time specified. Provide your documentation (bank statements, invoices, canceled checks), an explanation of why you reported the amount you did, and any corrected 1099s from payers.
  • If the IRS assessed interest and penalties, you can request abatement or penalty relief for reasonable cause (for example, if you have strong documentation that you reported what you reasonably believed to be correct).

How penalties and interest can arise

  • The IRS charges interest on unpaid tax from the original due date of the return. In addition, failure‑to‑pay and accuracy‑related penalties may apply if you underreport income or underpay tax. These penalties can be mitigated if you can show reasonable cause and good documentation.
  • Self‑employed taxpayers who underpay estimated taxes because income was unreported may also be liable for penalties on underpayment of estimated tax.

Special considerations by 1099 type

  • 1099‑NEC (nonemployee compensation): Usually reflects contractor or gig work. Report on Schedule C; pay self‑employment tax on Schedule SE.
  • 1099‑MISC: Can report rents, royalties, and other miscellaneous income. Check the correct schedule and boxes for reporting.
  • 1099‑INT/1099‑DIV: Interest and dividends should be reported on Schedule B if amounts exceed thresholds; still report even if no 1099 was issued.

(Note: See IRS guidance about specific forms for current filing instructions.)

Examples from practice

  • Example 1 — Freelancer: A client’s software‑development client failed to issue a 1099‑NEC. We totaled bank deposits and invoices and reported the income on Schedule C. When the payer later filed a corrected 1099 with a slightly different amount, we reconciled the difference and filed an amended return, attaching a corrected Schedule C and an explanation. The IRS adjusted but abated penalties because we had documented evidence and had reported in good faith.

  • Example 2 — Interest not reported: A taxpayer had bank interest that exceeded reporting thresholds but never received a 1099‑INT because the bank mailed it to an old address. The taxpayer reported the interest using bank statements and resolved a later IRS notice by presenting statements showing interest credited during the year.

Best practices to avoid problems

  • Keep organized records year‑round (invoices, receipts, bank statements, platform reports). Good documentation is your best protection.
  • Ask payers for a Form W‑9 up front so you have their EIN/SSN and correct name/address on file.
  • Reconcile 1099s against your books before filing. See our guide on reporting 1099 income: common errors and fixes for common reconciliation mistakes.
  • If a payer agrees to reissue a 1099, ask for a corrected copy and keep a record of the request. For detailed correction procedures, see best practices for filing corrected information returns.

FAQ (short answers)

Q: Can I ignore income if I don’t get a 1099?
A: No. You must report all taxable income whether or not you receive an information return.

Q: Should I wait for the payer to send the 1099?
A: No — file your return on time using your records. Contact the payer and the IRS if needed.

Q: When should I use Form 4852?
A: Form 4852 is meant as a substitute primarily for a missing W‑2 or 1099‑R. It is not a general substitute for every missing 1099 type; follow the Form 4852 instructions and IRS guidance.

Responding to an IRS notice

If you receive a notice about unreported income, respond within the deadline and include: a clear cover letter, copies of your records that support the amounts you reported, any corrected 1099s, and a signed statement of facts if needed. If you disagree with the proposed change, explain why and provide evidence; if the IRS stands by the adjustment, consider paying the tax and then requesting relief or filing an amended return if appropriate.

When to get professional help

If amounts are large, multiple payers are involved, or you receive a notice you don’t understand, consult a tax professional. In my practice, complex information‑return mismatches and IRS notices are best handled quickly with professional representation to limit penalties and speed resolution.

Sources & further reading

Professional disclaimer

This article is educational and informational only and does not constitute tax advice for any individual. For personalized guidance about a specific missing 1099 or an IRS notice, consult a qualified CPA or tax attorney.

If you’d like, I can prepare a short checklist you can print and use when a payer fails to provide a 1099.