Jessie Stake and Terri Adams were both surprised by the tax documents they received from the multi-level marketing company they worked with. The numbers on the 1099ks didn’t match their own records: Stake’s records showed she sold $5000 less than her tax paperwork showed, while Adams’ was off by over $20,000.
This can have huge tax consequences, as the IRS will wonder what happened to all that money. You don’t want to pay taxes on money you never received.
Both contacted their company headquarters with mixed results. The company representative told Stake that the tax forms were right, and she was wrong. Adams got a call back from accounting saying they would provide her with a line by line breakdown of how they arrived at the numbers. As of this writing, she hasn’t gotten the numbers yet.
What do you do when tax forms that are flat out wrong? It’s important that you get it correct and fast. Companies are required to have tax documents finished and available by January 31, but they don’t have to report the information to the IRS until February 28, so there’s time for corrections. Here’s what you do.
to keep reading, click here: What to Do If You Get Incorrect Tax Documents