When your tax forms are late
You technically don't need a 1099 form to file a tax return. What the IRS cares about is that you report all the income you earned during the year, whether it came from a regular paycheck, a side hustle, or your bank.
So if you’re missing 1099 forms but have detailed records of your income, you may be able to tackle a tax return without those forms.
The problem, though, is that when companies issue 1099s, they send a copy to you and a duplicate copy to the IRS. And if the information you report doesn’t match exactly what your 1099 says, the IRS might question your return.
However, this doesn’t necessarily mean you’ll be audited. In that case, what will typically happen is that you'll get a CP2000 notice highlighting the discrepancy. If you agree to the IRS's proposed changes, the matter can be resolved quickly, though you may end up having to pay more tax if the IRS finds that your income was under-reported.
It's also possible for a 1099 form to state that you earned less than the amount you're reporting. The IRS will alert you to that, too. You may end up eligible for a larger refund if that's the case, or a smaller tax bill.
On the other hand, if you don’t have great records of what you’ve been paid, you risk delaying your tax return in the absence of having the tax forms you need. And there can be penalties for filing a tax return late as well as for paying your tax bill late.
However, if you’re due a refund from the IRS and are late with your tax return, there’s actually no penalty. It just means you'll have wait longer to get the money the IRS owes you.
You should also know that companies are not required to send you a 1099 form if they paid you under $600. In that case, you’re still required to report that income, even if it’s a small amount.
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Learn MoreWhat to do about missing tax forms
If you're missing a 1099 form well beyond the January 31 deadline, there are a few things you can do. First, check your inbox and spam. Some companies deliver these forms electronically instead of mailing them, so it may be that you’ve had one sitting in your email this entire time.
If not, reach out to any employer whose 1099 form is missing and ask for an update. If needed, remind them that they're required to issue you that tax form.
If you're missing a 1099 form from a bank or financial institution, it's a good idea to log into your account. Chances are, you'll find it posted somewhere. If not, call the institution for help.
If, after making contact, you're still missing the 1099 forms you're in need of, you can reach out to the IRS at 1-800-829-1040 for assistance. But do be warned that following a recent string of IRS layoffs, wait times to talk to an agent may be lengthy, especially at this point in the tax-filing season.
Another thing you may want to do is talk to a tax professional about getting help with your tax return. They may be able to help you go through your records and find the right information to avoid a late tax return.
If you absolutely can’t file your taxes without your missing 1099 forms, you can always request an extension. That will extend the tax-filing deadline by six months automatically. But again, the sooner you can get ahead of that, the better.
An extension will only give you more time to file your taxes — not pay your bill. If you think you owe the IRS money from 2024, it’s a good idea to work with a tax professional to estimate that amount and make a payment by the April 15 filing date, proactively.
When you owe taxes and are late paying them, you accrue interest and penalties on that unpaid sum. So if you’re able to mostly get it right and make a payment on time, you may be able to largely avoid interest and penalties, even if your estimate is a little bit off.
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