For many freelancers and independent contractors, tax season comes with one familiar form: the 1099-NEC. It’s the document clients issue to report how much they paid you during the year. But what if the deadline passes, and you never receive one?
It may feel like a nightmare, but the truth is simple: you’re still responsible for reporting the income. Here’s what happens if you don’t get a 1099—and what you should do about it.
Why You Might Not Get a 1099
There are several reasons a client may not issue a 1099:
- They paid you less than $600, which doesn’t trigger a reporting requirement.
- You worked through a platform like PayPal or Upwork, where reporting is handled via Form 1099-K instead.
- The client misfiled, forgot, or is simply behind on paperwork.
- Payments were made to your incorporated business, which may not require a 1099.
What the IRS Expects
Even if you don’t get a 1099, the IRS still requires you to report all income you earned. The 1099 is just an information return—it doesn’t change your obligation. The IRS can compare your bank deposits, client records, or 1099-K filings against your tax return. If you leave income off, you could face:
- Penalties and interest for underreporting.
- Audits or notices if the IRS finds discrepancies.
- Potential classification as tax evasion if amounts are significant.
How to Protect Yourself
- Track your own income: Keep invoices, bank records, and contracts to verify amounts.
- Report all earnings: Even without a 1099, include the income on Schedule C (if self-employed) or other applicable forms.
- Follow up with clients: If you believe a 1099 should have been issued, politely remind the client. Sometimes it’s a clerical error.
- Work with a tax professional if you’re unsure how to categorize certain payments.
The Bottom Line
Not receiving a 1099 doesn’t give you a pass on taxes. The IRS expects you to report all income, whether you got a form or not. Treat the 1099 as a helpful reminder, not the only record of what you earned. By keeping good records and reporting honestly, you’ll avoid penalties and stay in good standing with the IRS.
Ready to Simplify 1099 Filing?
Tax season doesn’t have to be stressful. With 1099FIRE software and outsourcing services, you can prepare, e-file, and distribute 1099 forms quickly and accurately. Whether you manage a small business or work with freelancers, we’ll help you stay compliant and avoid costly mistakes. Let our team handle the filing so you can stay focused on what you do best.
Call (480) 706-6474 to get started today.