Previous Employer wants to threaten us with IRS if we DO NOT file taxes his way. What steps can I take?

[commentator]

Make sure yours is not one of the many lives Al Capone destroyed otherwise before they got him on tax issues. So they think you employees are "stupid" huh? I have seen a few employers like this, and the old saying applies here. If it happens once, shame on him, if it happens more than once, shame on you, you're letting him do it to you willingly. There are lots of jobs out there right now where the pay is legitimately done. Find one if you haven't already. I notice you call him a "former" employer. Good move.

The thing that would make you stupid is if you 1) continue to work for him and 2) let him threaten you into not doing exactly the right and truthful thing in filing your taxes 3) keep up any contact with this jackass who makes these crazy threats.

While you are reporting him for all sorts of fraud you can think of, don't forget to call your state's Department of Labor and report him for trying to misclassify employees as independent contractors. I'd bet a mint he's not paying in his unemployment taxes on you guys either, and if you filed for unemployment insurance that would come up. From every sound of it, you are NOT an independent contractor, he doesn't get to decide that just because he wants to, and if anybody investigates I do not think you'll be the one who gets in trouble.

 

[alucard12]

And Al Capone ended up going to prison on tax issues.

Al Capone was smarter too.

This guy tries to threaten anyone who speaks about doing things differently or reporting him to the government. I know he will be mad about the form 8919 filled out. I am not caring about what the douche wants. I want my money.

I wonder if my pay stubs would be adequate for evidence suggesting I am, in fact, an employee?

 

[PayrollHRGuy]

He is going to have a lot to explain to the IRS because he also gave you a W2.

 

[alucard12]

Make sure yours is not one of the many lives Al Capone destroyed otherwise before they got him on tax issues. So they think your employees are "stupid" huh? I have seen a few employers like this, and the old saying applies here. If it happens once, shame on him, if it happens more than once, shame on you, you're letting him do it to you willingly. There are lots of jobs out there right now where the pay is legitimately done. Find one if you haven't already. I notice you call him a "former" employer. Good move.

The thing that would make you stupid is if you 1) continue to work for him and 2) let him threaten you into not doing exactly the right and truthful thing in filing your taxes 3) keep up any contact with this jackass who makes these crazy threats.

While you are reporting him for all sorts of fraud you can think of, don't forget to call your state's Department of Labor and report him for trying to misclassify employees as independent contractors. I'd bet a mint he's not paying in his unemployment taxes on you guys either, and if you filed for unemployment insurance that would come up. From every sound of it, you are NOT an independent contractor, he doesn't get to decide that just because he wants to, and if anybody investigates I do not think you'll be the one who gets in trouble.

I left his ass in Sept 2018 after finding out his stupid schemes. I did not expect to get a 1099-MISC. I am honestly debating on filling a complaint with the IRS. I am needing to know what would I need to prove my case against him.

 

[alucard12]

He is going to have a lot to explain to the IRS because he also gave you a W2.

I figured. I have a weird feeling he would try to say the w4 is a contract as an independent contractor. I know a w-9 would be the form needed for independent contractors.

 

[alucard12]

I also want to mention he is an LLC type business. IDK if that matters to the situation though.

 

[PayrollHRGuy]

I figured. I have a weird feeling he would try to say the w4 is a contract as an independent contractor. I know a w-9 would be the form needed for independent contractors.

The W4 is in no way a contract one way or another and neither is the W9. But him having you complete a W4 certainly shows that he thought you were an employee at some point.

I also want to mention he is an LLC type business. IDK if that matters to the situation though.

It doesn't.

 

[cbg]

You don't have to prove you were an employee; he has to prove (to the satisfaction of the IRS) that you were not. The IRS will not be easily convinced.

 

[alucard12]

I know he is going around telling all of his employees that the IRS is auditing him. I honestly don't think he knows what an IRS audit is, to be honest.

I honestly don't think he understands the difference between the employee vs. contractor ordeal.