Understanding 1099s and the IRS: How to Get Verified Information Before Tax Filing
When it comes to tax time, ensuring your 1099 forms are correct is crucial. But how do you find out what the IRS has recorded? This article will guide you through the process and provide valuable insights to help you navigate the complexities of 1099s and the IRS.
Why You Can't Check 1099s Early
The IRS does not provide early access to 1099s due to various reasons, including data verification and security measures. Here's a breakdown of why they wait until later in the year to release the information.
Privacy Concerns and Name/SSN Mismatches
The IRS has strict privacy policies in place to prevent the wrong individuals from accessing sensitive information. In cases where the name on a 1099 does not match the Social Security Number (SSN) on the 1099 or tax return, the IRS may withholding the information until it can be verified. This helps safeguard against identity theft and ensures the correct person is receiving the right information.
Ensuring Accuracy of Your Tax Return
Even if you have received multiple 1099s, the IRS may only have a portion of them recorded. If the IRS has fewer 1099s on file than the ones you have, it's a red flag that could lead to additional scrutiny. Conversely, if the IRS has more 1099s than what you've reported, it's a sign that they're doing their due diligence. By waiting until later in the year, the IRS can match up all the 1099s with your tax return, ensuring the most accurate filing possible.
How to Check Your 1099s on the IRS Website
One of the most effective ways to verify your 1099s is by opening an account on the IRS website. Here’s a step-by-step guide on how to proceed:
Create an IRS Account
To access the 1099s, you need to create an account on the IRS website. Follow these steps:
Visit irs.gov and click on the 'Create an IRS account' button. Enter Your Information: Provide your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), date of birth, and other required details. Secure Your Account: Create a username and password for secure access. Verify Your Identity: Follow the verification process to ensure the account is associated with you.Accessing Your 1099s
Once you have an account, follow these steps to view your 1099s:
Log In: Enter your username and password to log in to your IRS account. Go to the ‘Access’ Section: Navigate to the section where you can view your tax forms. Check Your 1099s: Look for any 1099s that the IRS has recorded for you.Keep in mind that this information is typically available later in the year, around October or later, which might be after the initial April 15th tax filing deadline.
Additional Steps to Take
If you suspect that the IRS has more 1099s for you than what you have on file, consider taking the following steps:
Request a Wage Income Transcript
A Wage Income Transcript (WIT) provides a detailed history of tax forms filed under your SSN or ITIN. Here’s how to obtain one:
Visit the IRS Transcript Request Page: Go to irs.gov/transcripts. Choose the WIT: Select the Wage and Income Transcript option. Follow the Instructions: Fill out the form and follow the instructions to request the transcript.A WIT can help you verify the information the IRS has on file and ensure that all your income is accounted for.
Extend Your Tax Return
If the IRS has more 1099s than what you have, you may need to extend your tax return. Here’s how to do it:
File for an Extension: Visit irs.gov and follow the instructions to file for an extension. Treat the Extension as a Deadline: Use the extension period to gather and verify all the necessary information. Accurately Report Your Income: Ensure that you report all the income from the 1099s, even if it means adding more income to your tax return.By extending your return, you give yourself extra time to gather any missing 1099s and ensure that your tax return is complete and accurate.
Frequently Asked Questions
How do I find out what 1099s the IRS has on my 2023 taxes before I file?
The IRS does not provide early access to 1099s. You can check your 1099s by opening an account on the IRS website or requesting a Wage Income Transcript. You may also need to extend your tax return to gather all the necessary information.
Why don't they let you know in advance?
The IRS waits until later in the year to release 1099s to ensure accuracy and prevent identity theft. They provide the same 1099s that you have, so you are aware of the information the IRS has.
Conclusion
Understanding the process of checking your 1099s with the IRS is essential for a smooth tax filing experience. By creating an IRS account, requesting a Wage Income Transcript, and possibly extending your tax return, you can ensure that you have accurate and complete information before you file your taxes. Stay informed and proactive to avoid any potential issues with the IRS.