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Got a 1099 instead of W2 what can I do?

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Danielburnedme

Junior Member
What is the name of your state (only U.S. law)? Nc
I worked for a company last year as an employee. I filled out a W 4 form when I was hired . Taxes were witheld from my paycheck every week and were listed on my pay stub.

I was just sent a 1099 form listing the correct gross amount of money earned. The owner called my phone and left a message stating he did not pay any tax he witheld from my check . He says now he wants me to accept the money he took out of my check for the 7 months I worked for his company and file as a subcontractor.

There is no way I am going to do that . What is my course of action concerning this issue? Should I just go straight to the IRS WITH MY CHECK STUBS AND 1099? I don't want to be penalized for the business failure . What are my options if the company will not issue the correct w2?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Nc
I worked for a company last year as an employee. I filled out a W 4 form when I was hired . Taxes were witheld from my paycheck every week and were listed on my pay stub.

I was just sent a 1099 form listing the correct gross amount of money earned. The owner called my phone and left a message stating he did not pay any tax he witheld from my check . He says now he wants me to accept the money he took out of my check for the 7 months I worked for his company and file as a subcontractor.

There is no way I am going to do that . What is my course of action concerning this issue? Should I just go straight to the IRS WITH MY CHECK STUBS AND 1099? I don't want to be penalized for the business failure . What are my options if the company will not issue the correct w2?
If you can really get the withholdings back from him (so that you can use them to pay your taxes) then you can file an SS-8 with the IRS to protest being treated as a contractor, and to report that they treated you as an employee and withheld taxes, but still issued a 1099, and form 8919 with your tax return to have the employer held responsible for the employer's share of the social security and medicare taxes.

Doing the above would get you the same net result as receiving a W2, but would get his butt in a sling with the IRS. Hopefully you have your last paystub from that job so that you can provide them a copy with your form SS-8.
 

Danielburnedme

Junior Member
I do have my last pay stub . Although I do not have all the pay stubs because he did not give some of them. Which from what I read elsewhere is a violation of federal law also. I feel like the guy should get into trouble with the gov. He took my money and didn't pay the taxes. Now I will have to prove that he took money from me and kept it . It would be unlikely he has the money he witheld from my check. He payed my wages days late every 2 - 3 weeks. I have looked at ss-8 form. This whole mess is aggravating
 

LdiJ

Senior Member
I do have my last pay stub . Although I do not have all the pay stubs because he did not give some of them. Which from what I read elsewhere is a violation of federal law also. I feel like the guy should get into trouble with the gov. He took my money and didn't pay the taxes. Now I will have to prove that he took money from me and kept it . It would be unlikely he has the money he witheld from my check. He payed my wages days late every 2 - 3 weeks. I have looked at ss-8 form. This whole mess is aggravating
The SS-8 form is not as complicated as it looks, and a tax professional could easily help you fill it out. Much of it is repetitive and the point that would stand out is the fact that you do have paystubs showing withholding. That is the real kicker. You do not need all of them, you just need some.

The 8919 form that is filed with your tax return is very simple, and again a tax professional can help you with that.

Please believe me that the IRS takes this very seriously and while it might take a year or more for it to be truly investigated, the whammy that it will put on your employer is a serious one. An employers failure to remit withholding (called trust fund taxes sometimes) is about the biggest "sin" out there. If more "employees" would take advantage of the SS-8/8919 process much of the fraudulent issuing of 1099s would cease, because it would become just too dangerous to employers.
 

LdiJ

Senior Member
Thanks for the advice and encouragement. I just want to follow the law and do what is required of me. This is all new to me
The reality of things is that you could just roll over and play dead, and pay more tax than you actually owe, and your employer could get away with what he trying to do. The law doesn't REQUIRE you to turn him in. However, if you are foolish enough to not follow some relatively simple steps to defend yourself, then that is on you.

If you are worried that somehow your employer will be believed above you, then forget that entirely. You have paystubs.
 

single317dad

Senior Member
The reality of things is that you could just roll over and play dead, and pay more tax than you actually owe, and your employer could get away with what he trying to do.
Not to mention the harm to the social security work record if the taxes never get paid.
 

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