1099

[momm2500]

What is the name of your state? PA

What happens if found by the IRS that the people I gave 1099's to should have been employees? What are my penalties and what happens? Also what happens to those employees (who no longer work for me)

 

[ecmst12]

You will owe lots of money in taxes and penalties. If you want to know exact numbers, consult a tax professional....which you should have done in the first place.

 

[momm2500]

thank you. i guess the saving grace is that between the 2 employees, the total salary i paid them combined is at least $6,000. well my accountant is the one who told me to pay them and 1099 them later. i guess he would be in trouble too? since he signs off on all the business tax forms.

 

[justalayman]

thank you. i guess the saving grace is that between the 2 employees, the total salary i paid them combined is at least $6,000. well my accountant is the one who told me to pay them and 1099 them later. i guess he would be in trouble too? since he signs off on all the business tax forms.

he may be in trouble but you would be responsible for all the back payments as well as any penalties charged.

 

[eerelations]

Accountants aren't lawyers and thus shouldn't be expected to provide accurate legal advice.