What should I do with 1099 MISC forms I receive?

March 5, 2003

Subject:  Question about 1099MISC
From:  Dan
Date:  Sun, 23 Feb 2003

Mike,

I've been reading some of your responses on the website. First, thank you. I've gotten some great advice from you.

The question I have is regarding 1099 MISC forms. I've received a number of them for my business in 2002.

My question is this. If I am honestly reporting my total gross sales - this figure should include any amounts that I have received as 1099 forms. So as I file my tax return, there should be nothing special I need to do with these forms other than submit a copy of them to the IRS. Am I correct in this assumption? I keep accurate records of invoices that I send to my clients as well as any expenses and costs of goods that we incur - I've recently completed my return but did not file it and received another one in the mail. This shouldn't affect my return one way or another, should it?

Thanks in advance

Dan

Answer

Date:  28 Feb 2003

Hello Dan,

All you need to do is check to be sure the Form 1099 MISC agrees to your records and keep the form in your files. If there are any discrepancies, you should tell the issuer and request that a corrected form be issued. You don't need to send a copy to the IRS.

Good luck!
Mike Gray

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