How to Get a 1099 From a Closed Business

Businesses close for various reasons, but tax obligations remain. If you worked as an independent contractor and didn’t receive a 1099 from a now-closed business, you’re still responsible for reporting your income. Missing this form doesn’t exempt you from taxation, so it’s important to find alternative ways to document your earnings.

Finding the Individual or Entity in Charge

Locating the responsible party of a closed business can be difficult, but there are ways to track them down. Review past correspondence, such as invoices, payment records, or contracts, which may list the owner’s name, an accountant, or a payroll service that handled tax reporting. If the business was a sole proprietorship, the owner is personally responsible for tax filings. For corporations or LLCs, officers or a registered agent may have overseen compliance.

State business registries can be useful, especially if the company was incorporated. The Secretary of State’s website for the business’s registered state often maintains records of business owners, officers, or agents, even after dissolution. Searching these databases using the company’s legal name or Employer Identification Number (EIN) may reveal contact information for someone still responsible for financial matters. If the business used an accountant or tax preparer, they might still have records or be able to direct you to the appropriate party.

If the business closed due to financial distress, bankruptcy filings or legal notices may indicate who is handling outstanding obligations. A trustee or legal representative may have been appointed to oversee remaining liabilities, including tax documentation. Court records or public filings related to the closure can provide leads on who to contact.

Contacting the IRS for Guidance

If you cannot reach the responsible party, the IRS may be able to help. While the agency cannot issue a missing Form 1099-NEC on behalf of a closed business, it does have access to records that may verify reported payments. By requesting a Wage and Income Transcript using Form 4506-T, you can obtain a summary of income reported to the IRS under your Social Security number or Taxpayer Identification Number. If the business submitted a 1099 before closing, this transcript will reflect the earnings and can serve as an official record for tax filing.

If no 1099 was filed, the IRS may suggest alternative documentation. When calling the IRS at 800-829-1040, have details such as the business’s name, EIN (if known), and the year in question. The agent may recommend submitting a substitute form, such as Form 4852, which is typically used for missing W-2s but can sometimes be adapted for independent contractor income. IRS Publication 17 outlines best practices for reconstructing income records when official tax documents are unavailable.

If multiple workers report missing 1099s, the IRS may review whether the business properly reported contractor payments before shutting down. While this won’t guarantee that a form is issued, it could lead to an inquiry into the company’s tax compliance. If the IRS determines that income was not reported, it may adjust its records accordingly, though this process can take time.

Using Secondary Evidence of Earnings

When a 1099 is unavailable, reconstructing income using alternative documentation is necessary. Bank statements are a reliable starting point, as deposits from the closed business can demonstrate payment history. Reviewing transaction descriptions or electronic payment records from services like PayPal, Venmo, or direct ACH transfers can help confirm the source of funds. If payments were made via check, copies of deposited checks or bank images can further substantiate earnings.

Invoices and client correspondence also serve as proof. Copies of issued invoices, along with emails confirming payment or work completion, help establish a timeline of services rendered and compensation received. If payments were made through an online invoicing platform like QuickBooks or FreshBooks, transaction histories stored within these systems can provide detailed records of amounts, dates, and payer information.

For those who received physical checks or cash payments, maintaining detailed records is even more important. A personal income log, noting the date, amount, and nature of each payment, can help corroborate earnings. While self-reported logs alone may not satisfy IRS scrutiny, pairing them with corroborating documents—such as receipts for reimbursed expenses, signed contracts, or client communications—strengthens their credibility.

Handling Missing Documents on Your Tax Return

Filing an accurate tax return without a 1099 requires careful attention to income reporting rules. The IRS expects all taxable income to be reported, regardless of whether a tax form was received. Omitting earnings could trigger an underreporting notice or an audit, especially if the closed business filed a 1096 summary form listing payments to contractors. To prevent discrepancies, income should be reported in the gross receipts section of Schedule C for sole proprietors or on the appropriate line for other business entities.

Estimating total earnings should be done using all available records. If multiple payment sources exist, reconciling deposits against known invoices or contracts can help ensure accuracy. Overreporting income slightly may be preferable to underreporting, as the IRS is less likely to challenge a return where income is fully disclosed. If estimates must be used, maintaining a worksheet detailing calculation methods can provide a defensible position should questions arise.

For self-employed individuals, accurately calculating net earnings is necessary. Without a 1099, deductions for business expenses become even more important to offset taxable income. Proper documentation for deductions, such as mileage logs, equipment receipts, or home office expenses, helps reduce tax liability while ensuring compliance with IRS substantiation requirements under the Internal Revenue Code.

Preserving Financial Records

Maintaining thorough financial records helps prevent issues when a 1099 is missing. The IRS recommends keeping income-related documentation for at least three years, but in cases where income is underreported by more than 25%, the agency can audit returns up to six years later under the Internal Revenue Code. Ensuring that all earnings are properly documented helps protect against potential disputes and penalties.

Digital recordkeeping tools can simplify this process by automatically tracking payments and expenses. Accounting software like QuickBooks, Wave, or Xero allows independent contractors to generate reports summarizing income sources, while cloud storage services can securely archive invoices, bank statements, and receipts. For those who receive payments through multiple channels, consolidating records into a single spreadsheet or financial ledger provides a clearer picture of total earnings. If audited, having a well-organized system in place makes it easier to substantiate reported income.