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sarah777

Guest
I am in Illinois. My question is this: In 2000 I worked for a social service agency. I was paid bi-weekly. I quit after 6 1/2 months. Over the 6 1/2 time frame I accrued vacation time. I was set up with direct deposit and and 2 weeks after I quit I got a paycheck deposited into my account. I assumed this was my vacation pay which was due to me. I got a phone call from the agency stating they over-paid me and that they want the money back. i refused because I believed it to be mine. Long story short, I never gave it back. So in April of 2001 they send me a 1099Misc for the amount of my pay before taxes! What am I supossed to do with this? Do I file with my 2001 taxes even though it is technically from 2000? They are a big organization and do not see the sense in battling with them. I just do not want any trouble from the IRS. Any suggestions as to what I should do? Shouldn't this have been filed with 2000 taxes not 2001? Please advise!
 


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loku

Guest
If the 1099Misc they sent you was for the amount of the disputed paycheck, and the W2 they sent you for 2000 did not include that amount as wages, then it was correct for them to send you the 1099Misc. And it is income for the year 2000, not the year 2001.

You have a choice: either amend your return for the year 2,000, including that income, or wait for the IRS to question you about the 1099. If you amend the return, you may owe interest on the amount of the additional tax you owe. If they question you about it, they will bill you for the tax you owe on it and for interest on the tax. I don’t think the interest would be much in either case.
 

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