Please Help

[faithnlve]

What is the name of your state? vt. what forms do you fill out when reporting a false 1099 misc? I was sent a 1099 misc (non employee compensation) and need to get this fixed, plus I would like to penalize the person for what they did knowing I did not receive this money. Thanks

[FlyingRon]

You're going to have to explain that a little more.

[faithnlve]

my husband and I did an excel spreadsheet voluntarily for my mom's business to help her make her bookkeeping easier. I also volunteered calling for two nights of bingo at her business at no pay. The following week she gave me free admission for calling, and again the following week after that. Other than this, I did no work, nor did I ask for any type of compensation for helping her. I have a brother who I am not getting along with right now. He and my mom are having issues since the business was sold to him. March 3rd, 2008 i received a 1099misc for over 4000.00!!!!!!!!!!! After repeatedly telling him this 1099 misc is bogus he calls me and tells me he will knock it down to 800.00. I refused again!! I told him I did not take even a penny for anything! He then tells me if I don't accept the 800.00 on the 1099misc, then he will be keeping it at the 4000.00 and I will have to do what I have to do. My husband and I did our taxes in February already, and this I am afraid is going to cause problems . I don't know what forms I need and how to report what my brother did as wrong. thanks

[irsos]

Originally Posted by faithnlve

What is the name of your state? vt. what forms do you fill out when reporting a false 1099 misc? I was sent a 1099 misc (non employee compensation) and need to get this fixed, plus I would like to penalize the person for what they did knowing I did not receive this money. Thanks

There are no forms to fill out. First, contact them and tell them it was an error. If they will not fix it, do nothing excpet report your income as you understand it. In a year or so you may receive a letter from the IRS reporting the discrepancy. Simply send a letter back stating you never received the money. The burden of proof is on them to prove they paid you what is on the 1099.

[faithnlve]

But, would it not be better to file it now? I mean, I really feel what my brother is doing is thinking my mom let me play bingo for free for compensation for doing the excel spreadsheets for her. He claims he has witnesses. Well, I did play bingo, but I PAID my own way other than those two nights my mom gave me free admission (5.00) for calling for her for two nights. But 10.00 compensation is alot less than 4,0000.00!! What upset me more is he offered to knock it down to 800.00 for some reason, but when i even refused that, he said then deal with the 4000.00. I don't think it would be wise for me just to sit on this presently, when I know of the falseness of the 1099. I just don't want it biting me in the butt by not doing anything now. Thanks Again

[TinkerBelleLuvr]

He will have to PROVE the $4000. Can he provide any checks made out to you in that amount? Even if it were reimbursements for anything else?

There aren't any forms that you can send at this time. It'll come around into the end of this year, or next year.

[faithnlve]

OK...I just received a phone call that I will be receiving another 1099 misc. This time they plan on sending me another 1099 misc for 700.00. This is because they claim they found a check written to the office of child support from the company which benefited me. Now, let me explain that check. This check which was sent by the company to the office of child support was based upon my income of 10.00 an hour as a salary as an owner at the time. I did not receive my pay for that period of time until November. This salary which I received in November was reported to the IRS on my 2007 tax return. How can they legally do this to me???? The company paid it as a wage withholding for the weeks I was owner and worked even though I did not get my paid wages until November. What can I do now? Thanks

[LdiJ]

Originally Posted by faithnlve

OK...I just received a phone call that I will be receiving another 1099 misc. This time they plan on sending me another 1099 misc for 700.00. This is because they claim they found a check written to the office of child support from the company which benefited me. Now, let me explain that check. This check which was sent by the company to the office of child support was based upon my income of 10.00 an hour as a salary as an owner at the time. I did not receive my pay for that period of time until November. This salary which I received in November was reported to the IRS on my 2007 tax return. How can they legally do this to me???? The company paid it as a wage withholding for the weeks I was owner and worked even though I did not get my paid wages until November. What can I do now? Thanks

Was it actually withheld from the pay you got in November? If so, do you have a check stub to prove that?

If so, then I would send them a very businesslike letter demanding that they prove the $4000.00 and proving to them that the 700.00 was withheld from your pay.

[faithnlve]

There were no pay stubs. This accountant whom is doing all this is also an old partner who became a partner in November of 2006. She took over the books. She has many grudges and is being vindictive with me. She always paid everyone in cash each night and kept track of it. Federal, State, and medicare taxes were paid and show on our w-2's which she sent out in 2007. I paid the taxes owed and filed what she sent. Remember she did not come in as the treasurer until November of 2006. I helped open this business in June of 06 as a partner and left when she came on board. I was paid in cash which was kept track of, so there is no pay stubs. But I did pay all taxes on the income I did receive for 2006 on my 2007 tax return. This child support check was sent to the office of child support in August of 06 based upon what I told the judge what my hourly pay was going to be. The business did not actually open until September of 06, but the business agreed to pay June, July and 3 weeks of August of my child support since I was now in arrearages and since I had worked without getting any money yet. So how can she send me a 1099 for that check? I paid taxes on the income I received in 2007, everything was claimed. Thanks again.

[LdiJ]

Originally Posted by faithnlve

There were no pay stubs. This accountant whom is doing all this is also an old partner who became a partner in November of 2006. She took over the books. She has many grudges and is being vindictive with me. She always paid everyone in cash each night and kept track of it. Federal, State, and medicare taxes were paid and show on our w-2's which she sent out in 2007. I paid the taxes owed and filed what she sent. Remember she did not come in as the treasurer until November of 2006. I helped open this business in June of 06 as a partner and left when she came on board. I was paid in cash which was kept track of, so there is no pay stubs. But I did pay all taxes on the income I did receive for 2006 on my 2007 tax return. This child support check was sent to the office of child support in August of 06 based upon what I told the judge what my hourly pay was going to be. The business did not actually open until September of 06, but the business agreed to pay June, July and 3 weeks of August of my child support since I was now in arrearages and since I had worked without getting any money yet. So how can she send me a 1099 for that check? I paid taxes on the income I received in 2007, everything was claimed. Thanks again.

The only way it could be done was if the money wasn't actually withheld from your pay....if the money wasn't actually included on your W2. However, in that case, the proper thing for them to do would be to correct your W2, NOT give you a 1099.

[faithnlve]

Originally Posted by LdiJ

The only way it could be done was if the money wasn't actually withheld from your pay....if the money wasn't actually included on your W2. However, in that case, the proper thing for them to do would be to correct your W2, NOT give you a 1099.

You say the only way it could be done was if the money wasn't actually withheld from my pay. My total year wages was correct in my W-2, but, this check was sent out before I got my paid wages. The company agreed to send out this arrearage amount because I was putting so much time into the LLC, and since the court ordered wage withholding from the LLC. I got paid for June, July , and August in November of 2006 because the LLC was too new, and had not "opened" its doors yet, so I knew I had to wait. So the money was included in my W-2.

[LdiJ]

Originally Posted by faithnlve

You say the only way it could be done was if the money wasn't actually withheld from my pay. My total year wages was correct in my W-2, but, this check was sent out before I got my paid wages. The company agreed to send out this arrearage amount because I was putting so much time into the LLC, and since the court ordered wage withholding from the LLC. I got paid for June, July , and August in November of 2006 because the LLC was too new, and had not "opened" its doors yet, so I knew I had to wait. So the money was included in my W-2.

So your W2 reflected the total amount of money you got actually paid, PLUS the arrearage amount? You keep explaining, but you are still not clearly answering that question. If you can't clearly answer it here, how are you going to clearly explain it if you have to go to court or to the IRS?

[TinkerBelleLuvr]

Seems to me that the accountant should have grossed up the child support payment to make sure that the correct SS/Medicare/Taxes were done and then do a misc deduction of the child support so that there was technically a 0 paycheck.

[faithnlve]

Originally Posted by LdiJ

So your W2 reflected the total amount of money you got actually paid, PLUS the arrearage amount? You keep explaining, but you are still not clearly answering that question. If you can't clearly answer it here, how are you going to clearly explain it if you have to go to court or to the IRS?

My w-2 reflected the total amount of money I received which should include the child support as part of that total. That is why I am confused how she can me a 1099 on the child support only.

[LdiJ]

Originally Posted by faithnlve

My w-2 reflected the total amount of money I received which should include the child support as part of that total. That is why I am confused how she can me a 1099 on the child support only.

You said "should" include the child support. Did it include the child support or not? You know the answer to the question, or should, so you better be prepared to answer it DEFINATIVELY if you want to fight this.

The 1099 is totally improper, but a corrected W2 would not be if the child support was not included in your W2.