I am NOT an attorney.
I guess you mean you thought you were to be "paid under the table" meaning no deductions for federal or state taxes, no social security, etc. Were you paid in cash or do you have some form of paperwork showing the hours you worked , etc? If you do not have any paperwork how can you substantiate your claim "I was an hourly employee".
Apparently the resort/marina, you, and the IRS have differing opinions as to what constitutes an "employee". Want to guess who will prevail?
Did you believe that you were an independant contractor? Do you have any special skills, licenses, etc that you can show.
I think what happened here is that the resort/marina wants to treat you as an independant contractor so it can save money on it's portion of social security, workmens comp premiums, etc. You for whatever reason went along with it.
Without knowing the exact details of the work requirements I can't speak to the question of the "free lodging" but I hope you realize that there is probably a 95% chance that the value of the "free lodging" is taxable to you also as remuneration for your labor.
If you are found to be an employee of the resort/marina you are responsible for the taxes. Since you state no withholding was done you get no credit and will be assessed the your portion of social security taxes also.
If you are found to be an independant contractor you are responsible for the taxes and all of the social security taxes.
It is my guess that from the briefest of details you provided that you were an employee.
In effect the resort/marina is saying that you were an independant contractor by providing you a 1099.
Working for cash under the table always sounds good but it invaribly comes back to bite you.
Check out the IRS site and see what exactly you status- you have to meet a rather stringent test to be not an employee. Either way you have to pay taxes, just one way is more that the other.
Good luck.