Since the 1099 form you receive is also reported to the IRS, the government knows your income even if you forget to include it on your tax return. As a result, all taxpayers must keep track of income earned throughout the tax year so that their income is properly reported and not misreported. Taxpayers don't need to send their 1099 forms to the IRS when filing the return, but they should report any errors on their 1099 forms. A common misconception is that if you don't hear back from the IRS within a reasonable period after filing, for example, a few months, you're clear about it.
However, not all retirement distributions are taxable, and a tax professional should be consulted if you are not sure if you should pay taxes on a distribution. They may have time to correct it before sending it to the IRS, which is in your best interest. You're ready to rest and relax about it for the rest of the year, or at least until you make your first quarterly tax payment. The end of January may not seem momentous, but it's important for tax professionals, as it marks the start of the IRS Form 1099 season.
There are a variety of 1099 forms, as there are many types of income, including interest income, local tax refunds, and retirement account payments. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing more than 30 hours of tax training each year. If you receive a missing or corrected Form W-2 or Form 1099 after filing your return and a correction is needed, use Form 1040X (PDF), amended U. A Form 1099-R is issued if a taxpayer received a distribution or payment of a pension, retirement plan or individual retirement account (IRA).