It is becoming more and more the norm to see the Too Big To Fail Nationals issue 1099MISCs which are either erroneous or incorrect. Many Contractors are simply at a loss as to what course of action they have. First and foremost, you need to contact the entity that issues the 1099 and substantiate your claim. We recommend that you do this both in email and by Certified Mail. Second, you need to contact IRS. IRS has been dealing with this issue for years and especially of late due to the financial institutions issuing 1099s on foreclousres.
After Feb. 14, you can contact the IRS directly at 1-800-829-1040 to request assistance. The IRS will ask for your personal information, your estimate as to the correct amount, evidence to support this and which steps you have taken to address the issue on your own.
File your taxes on April 15 (or the applicable tax deadline for that year) using Form 4852 if you have not received a 1099-R (corrected 1099) by that date. Form 4852 will require much of the same information as your original 1099, but it will allow you to file with the corrected information.
Remember, this information should NOT replace obtaining advice from a CPA!