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Thread: Fraudulent 1099

  1. #1
    faithnlve is offline Member
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    Fraudulent 1099

    What is the name of your state? vt...1099 misc was sent. never received any compensation, money, or was a contractor or employee. I did help my mom voluntarily with some legal, and a couple nights. New owner sent me a 1099-misc for (alot!), i wrote back a certified letter this is a false 1099, he said I have to prove it???? He already used it against his taxes, Now what? Irs KNOWS, but now my refund is being held. This is just bad bad bad. Who can I complain to besides IRS? My refund is being held hostage due to it.
  2. #2
    seniorjudge is offline Senior Member
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    Quote Originally Posted by faithnlve View Post
    What is the name of your state? vt...1099 misc was sent. never received any compensation, money, or was a contractor or employee. I did help my mom voluntarily with some legal, and a couple nights. New owner sent me a 1099-misc for (alot!), i wrote back a certified letter this is a false 1099, he said I have to prove it???? He already used it against his taxes, Now what? Irs KNOWS, but now my refund is being held. This is just bad bad bad. Who can I complain to besides IRS? My refund is being held hostage due to it.
    I give up.

    What are you talking about?
    There are two rules for success:

    (1) Never tell everything you know.
  3. #3
    Some Random Guy is offline Senior Member
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    The new owner claims to have paid you for your work. He has documented that he owed you that amount via the 1099. If you were never paid that amount, your options are to A) do what you did and tell the IRS that it was fraudulently filed, or B) Sue him for amount he showed on the 1099 since you did the work and he never actually paid you.

    Also, about this "new" owner: Was he the owner when you did the work and supposedly got paid? Where is the old owner in all of this and does the old owner claim he paid you?
    Last edited by Some Random Guy; 05-09-2008 at 01:05 PM. Reason: add owner question
  4. #4
    irsos is offline Member
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    Quote Originally Posted by faithnlve View Post
    What is the name of your state? vt...1099 misc was sent. never received any compensation, money, or was a contractor or employee. I did help my mom voluntarily with some legal, and a couple nights. New owner sent me a 1099-misc for (alot!), i wrote back a certified letter this is a false 1099, he said I have to prove it???? He already used it against his taxes, Now what? Irs KNOWS, but now my refund is being held. This is just bad bad bad. Who can I complain to besides IRS? My refund is being held hostage due to it.
    This 1099 cannot be for 2007 because the IRS does not have that information yet and does not do document matching during the filing season. This means it was 2006 or before. Therefore, you received notice from the IRS about it and did not respond to the IRS and they assessed additional tax and are now holding your 2007 refund or more likely, have already offset it.

    If you receive a bogus 1099 and the IRS notifies you of a potential adjustment to your return, all you have to do is write back and tell them it is bogus and the burden shifts to the person who filed the 1099 to prove they paid you. If you ignore the notice, the tax gets assessed and then the burden of proof shifts to you. You should request audit reconsideration to get the case reopened.
    Last edited by irsos; 05-09-2008 at 02:52 PM.
  5. #5
    faithnlve is offline Member
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    Quote Originally Posted by irsos View Post
    This 1099 cannot be for 2007 because the IRS does not have that information yet and does not do document matching during the filing season. This means it was 2006 or before. Therefore, you received notice from the IRS about it and did not respond to the IRS and they assessed additional tax and are now holding your 2007 refund or more likely, have already offset it.

    It is for 2007. I "notified" the IRS and told them I volunteered for two nights for the business whom manages non profits. Other than that I only attended functions, did no volunteer work. period. IRS told me to send a certified letter to the "new" owner of the business. This new owner says he has witnesses, that I did get compensated, so sent me a 1099 for an amount that he made up. He is now claiming his business taxes have been done and he will not change anything. now is this legal?

    If you receive a bogus 1099 and the IRS notifies you of a potential adjustment to your return, all you have to do is write back and tell them it is bogus and the burden shifts to the person who filed the 1099 to prove they paid you. If you ignore the notice, the tax gets assessed and then the burden of proof shifts to you. You should request audit reconsideration to get the case reopened up
    So having a witness is proof??
  6. #6
    irsos is offline Member
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    You have a witness to NOT getting paid? That will not do it. You need to request audit reconsideration and shift the burden back to the company.
  7. #7
    faithnlve is offline Member
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    Quote Originally Posted by irsos View Post
    You have a witness to NOT getting paid? That will not do it. You need to request audit reconsideration and shift the burden back to the company.
    NO the NEW owner is claiming HE has a witness. He is claiming that that the company gave me an "economic benefit" for volunteering my time last summer for the business, which runs bingos for non profits. I did volunteer two nights....as a caller for the old owner of the business..and the old owner let me play bingo free for two nights to compensate me. I never did any other night volunteering, but, I did play some nights as a paying customer. This idiot witness is telling the new owner..."I saw her there 3 times a week, and I KNOW she was playing for free. I am in such a shock over this whole thing....and completely outraged. The old owner has told him that I only volunteered two nights. This guy is a sleeze. So the new owner sends me a 1099 for thousands of dollars, and claims he has a witness to back him up. $4,000 as an economic benefit for 2 nights?????!! This to me is fraudulent!!!
    Last edited by faithnlve; 05-09-2008 at 03:33 PM.
  8. #8
    irsos is offline Member
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    Quote Originally Posted by faithnlve View Post
    NO the NEW owner is claiming HE has a witness. He is claiming that that the company gave me an "economic benefit" for volunteering my time last summer for the business, which runs bingos for non profits. I did volunteer two nights....as a caller for the old owner of the business..and the old owner let me play bingo free for two nights to compensate me. I never did any other night volunteering, but, I did play some nights as a paying customer. This idiot witness is telling the new owner..."I saw her there 3 times a week, and I KNOW she was playing for free. I am in such a shock over this whole thing....and completely outraged. The old owner has told him that I only volunteered two nights. This guy is a sleeze. So the new owner sends me a 1099 for thousands of dollars. This to me is fraudulent!!!
    If the 1099 is for your winnings - it may well be valid. But the witness testimony is of no value if it was just for playing free.
  9. #9
    faithnlve is offline Member
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    LOL....I wish I won that amount! No, this witness is telling the new owner, that I played for free every night. I work nights, and this is quite maddening what they sent me.

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