Forms 1099 Impact Your Taxes And IRS Audit Risk

It is nearly tax time again, and January is a key month for one of the most important tax forms of all: IRS Forms 1099. They usually arrive in late January or early February, reporting how much you were paid in 2022. They can have errors, so check them carefully. Each Form 1099 is matched to your Social Security number, so the IRS can easily issue a tax bill if you fail to report one. If you don’t include the reported item you’re almost guaranteed an audit or tax notice.

Even if a company has your old mailing address, the information will be reported to the IRS (and your state tax authority) based on your Social Security Number. Make sure payers have your correct address so you get a copy. Update your address directly with payers, and put in a forwarding order at the U.S. Post Office. It’s also a good idea to file an IRS change of address Form 8822. The IRS explains how to notify IRS.