mackinnond
Junior Member
What is the name of your state? Virginia
Recently received a CP2000 citing 1099-misc income ($4145) not noted on my 2003 return. If this info is correct...pay $1200 more in taxes...
Question is, I don't know whether to fight this (it’s an error, just hard to prove) or just pay the $1200 and not fight "the law". The error is from a small company I used to work for that paid my regular income (still have the w-2s) and reimbursed me for expenses via other deposits, which they must have coded as 1099. I never received a 1099 form from that company and thus never put it on my 2003 tax return. If I don't have any proof that this was reimbursement income...other than the fact that they paid be regular income via a W-2, how to I prove that this wasn't income, but just reimbursement?
Also, interesting twist...that company is being audited very soon and so is not very interested in helping me with a letter of explanation. What should I do? Tax lawyers are expensive (likely close to $1200 anyway) and accountants can only help with receipts...which are with the company on my expense reports. Any suggestions?
Dave
Recently received a CP2000 citing 1099-misc income ($4145) not noted on my 2003 return. If this info is correct...pay $1200 more in taxes...
Question is, I don't know whether to fight this (it’s an error, just hard to prove) or just pay the $1200 and not fight "the law". The error is from a small company I used to work for that paid my regular income (still have the w-2s) and reimbursed me for expenses via other deposits, which they must have coded as 1099. I never received a 1099 form from that company and thus never put it on my 2003 tax return. If I don't have any proof that this was reimbursement income...other than the fact that they paid be regular income via a W-2, how to I prove that this wasn't income, but just reimbursement?
Also, interesting twist...that company is being audited very soon and so is not very interested in helping me with a letter of explanation. What should I do? Tax lawyers are expensive (likely close to $1200 anyway) and accountants can only help with receipts...which are with the company on my expense reports. Any suggestions?
Dave