Reporting Income Correctly: 1099s and Audits

Waiting for a 1099 form before reporting your income? That’s not how it works! The IRS requires you to report all earned income, regardless of whether you receive a 1099 or not. Even if someone pays you in cash or provides payments in another form, it’s still taxable. Audits can uncover unreported income, and the IRS can retroactively issue 1099s for past years. Stay compliant and report your income correctly. Need help? Call Dr. Friday at 615-367-0819. Transcript: G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment. If you are waiting to receive a 1099 before figuring out how much money you earned for the year, let me tell you—that’s not how it’s supposed to work. It doesn’t matter if you receive a 1099 or not. I’ve seen cases where people were audited, and after reviewing past records, the IRS went back three years and reissued 1099s. This caused major tax issues for those involved. Remember, tax law states that any money you earn must be reported unless it’s tax-free income. Whether you’re paid in cash, checks, or another form, it’s still taxable. Don’t risk an audit by underreporting! If you need help, call my office at 615-367-0819. You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.