Form 1099

[youngestsister]

What is the name of your state? Kentucky
My niece is 20 years old, she has a number of 1099's, but recently separated from her parents due to emotional abuse, her father was listed as custodian for her and conveniently did not have her do a signature card for her accounts when she turned 18. The 1099's are clearly in her name and SSN, but her father has taken the money in those accounts or blocked her from accessing them.

She however is still liable to file taxes with the IRS for those 1099's without having the money. The accounts were clearly set up for her, money received from grandparents, relatives and parents to help with her college expenses. She has at this time asked for an extension on her taxes, but does not know what is the next step.

Has her father committed a crime here, grand theft, tax fraud? What can be done to help her get the money she is due to continue college? She is a good girl and working two jobs to stay in college. She could not get FAFSA aide because her parents would not give her information to file it, so we had to go through other means to get her money to continue college. She also does not have funds to hire a lawyer to help her with this, are there any pro-bono lawyers that would help in this area.

Please help me to help her. Thank you.

[LdiJ]

Originally Posted by youngestsister

What is the name of your state? Kentucky
My niece is 20 years old, she has a number of 1099's, but recently separated from her parents due to emotional abuse, her father was listed as custodian for her and conveniently did not have her do a signature card for her accounts when she turned 18. The 1099's are clearly in her name and SSN, but her father has taken the money in those accounts or blocked her from accessing them.

She however is still liable to file taxes with the IRS for those 1099's without having the money. The accounts were clearly set up for her, money received from grandparents, relatives and parents to help with her college expenses. She has at this time asked for an extension on her taxes, but does not know what is the next step.

Has her father committed a crime here, grand theft, tax fraud? What can be done to help her get the money she is due to continue college? She is a good girl and working two jobs to stay in college. She could not get FAFSA aide because her parents would not give her information to file it, so we had to go through other means to get her money to continue college. She also does not have funds to hire a lawyer to help her with this, are there any pro-bono lawyers that would help in this area.

Please help me to help her. Thank you.

If her father is listed as custodian on the accounts then its possible that he has breached his fiduciary duty, and possible that he has not. I would think that all of those relatives who contributed to her education, should consider putting some pressure on dad if he is not acting in good faith. Suing dad is also a logical step if there is no other solution.

However, that is not a topic for a tax forum.

Unfortunately the IRS is going to hold her responsible for the taxes on the interest, dividends and or stock sales, whether she has access to the money or not. Therefore, she might as well file her taxes, and get that over with.