For people who earn money from various places, remembering to report every single cent can be difficult. But 'I forgot' isn't a good enough excuse for the IRS.
For any miscellaneous income over $600 you received throughout the year, the company you worked for should send you a Form 1099. If you don't receive it for some reason -- it was mistakenly sent to a previous address, for instance -- you can be sure that the IRS will still get it.
You can either request the missing form from the employer or simply report the income without the form. This is why it helps to track your income throughout the year.
Of course, some people earn money that may not get reported on 1099s -- like side money made giving people haircuts. Even if the IRS doesn't know about it, you must report this income as well or you risk the agency finding out and nailing you for tax evasion.
"Some people have a tendency to forget when they got a few checks here and there, but for some people it's willful," said Lieberman.
