Can the IRS determine if I received any income from a company if that company never issued me a 1099?

by Dominic T. Cutuli, CPA | Feb 12, 2019

I did some freelance work this year, and I never received a 1099. When I asked, the employer said they had no record of paying me that year and, therefore, they were not reporting that they paid me anything to the IRS. Is there any way for the IRS to know that I received income from this company if they don't issue a 1099?

Generally, businesses that make payments of $600 or more for services to nonemployees in a calendar year are required to report the payments on Form 1099-MISC to the federal and state tax authorities.

In your case, where a 1099-MISC was not issued, the IRS still requires a taxpayer use his or her own records to report all income received during the tax year. The fact that you did not receive a Form 1099-MISC does not exempt you from reporting the income and paying the associated taxes due.

Best of luck to you.

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Answered by: Dominic T. Cutuli, CPA, is a principal with H2R CPA in Pittsburgh.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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