01/28/2026
Ask Ashley Segment | Tax Tip
If a company reports an incorrect 1099 amount and refuses to correct it, you should still proceed with filing your tax return.
Report the 1099 exactly as it was issued, then on Schedule C, record the difference as an expense.
For example:
• 1099 issued: $50,000
• Actual payments received: $30,000
• Expense recorded: $20,000 (labeled Incorrect 1099 Amount)
Be sure to keep detailed records of payments received and all communication with the company in case of an audit.
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