No 1099 received from questionable builder

Mojo · #1 (**permalink**) 07-18-2009, 07:42 AM

We have subcontracted for a builder for the last 3 years who has never supplied us with a 1099. (the amounts are almost $100000 yr) I report the income as I should, however what is stopping this guy from claming he paid our business MORE money than he actually did? This guy is a crook and a liar, so I wouldn't put anything past him.

TaxGuru · #2 (**permalink**) 07-19-2009, 01:00 AM

I would simply report all the income received from this subcontractor irrespective of whether or not the builder supplies you with a 1099-Misc. In the event the builder sent you a wrong or incorrect 1099-Misc, I would not fear this situation as you can always report to the IRS that you only received a certain sum of money from the builder.

Then you can send documentation to the effect that you only received a certain amount and also you could have your CPA send a note that the builder sent you the wrong 1099-misc deliberately!