| Well, the first thing to do is of course recheck if the corrected 1099-Misc that you received matches the amounts per your records. You should make sure that you received the checks prior to 12/31/07.
Sometimes, the companies mail checks to contractors on or around the end of the year, and these checks are not received by the taxpayers until after Jan 1, of the following year. The amounts of these checks that are received after Jan 1 of the following year can be adjusted from your Schedule C, and can subtracted from the amounts reported on the 1099-Misc.
If all payments match per 1099-Misc and these were all paid and deposited in 2007, then no adjustments can be made. In this situation, you must immediately, contact your CPA and have him prepare an amended tax return for tax year 2007.
Clearly, the IRS may attempt to asssess late interest and penalties but, the sooner you file an amended tax return, it is very possible that your CPA will be in a position to abate taxes and interest.
From the IRS standpoint, the individual taxpayer is responsible to report the correct income irrespective of the erroneous receipt of the 1099-Misc amounts being reported. So, really you should have reported correct amount of income on your tax return. If the difference between the corrected 1099-Misc and the original amounts reported is substantial and material, then I really think that if may be difficult to abate all the interest and penalties altogether.
But, clearly, the wisest move would be to immediately file an amended tax return before the IRS contacts you.
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