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

[alucard12]

A previous employer is trying to say, anyone who files differently on their taxes, he will report to the IRS as an independent contractor who made $15,000/year and pays 40% of the income. He says he has books (handwritten) of people who worked, he paid, and the amount he gave to those working or have worked for him. He controlled all aspects of the employment to the pure definition of employee under the IRS Independent contractor vs. employee article.
I was working for him in 2018, received a 1099-MISC as well as a w2, and filed taxes with form 8919 code h. I have no understanding why he wants to go this route other than not to pay his share of taxes.
I want to know what legal steps I can take to protect myself from any imminent threat from the previous employer who is threatening people.
Here is what I do know about the situation from other people and seen with my own eyes:
He was paying a lot of his previous employees under the table of $75/week, controlled everything from the pay rate, hours worked, buildings completed, days worked, supplies, equipment, and what time we started. I also know he was paying people way under the legal rate of pay for those who worked for him. I have witnesses who will back me up against him if the IRS would contact me about this situation.

 

[adjusterjack]

I want to know what legal steps I can take to protect myself from any imminent threat from the previous employer who is threatening people.

There are none. There's nothing you can do to prevent people from doing bad things to. You just get to clean up the mess after they do it.

I was working for him in 2018, received a 1099-MISC as well as a w2, and filed taxes with form 8919 code h.

Then you did what you were supposed to do. Keep your records forever. If the IRS ever asks you about, you have those records to back up your return.

He was paying a lot of his previous employees under the table of $75/week, controlled everything from the pay rate, hours worked, buildings completed, days worked, supplies, equipment, and what time we started. I also know he was paying people way under the legal rate of pay for those who worked for him. I have witnesses who will back me up against him if the IRS would contact me about this situation.

Here's how you report tax fraud to the IRS.

https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity
If you don't report it, you have nothing to complain about.

 

[HighwayMan]

How is your ex-employer going to know how you file your taxes??

 

[LdiJ]

How is your ex-employer going to know how you file your taxes??

When he gets contacted about the 8919 and the SS-8 he is going to have a really good idea.

 

[NeilTheCop]

While far from being any sort of tax professional or even an amateur for that matter, I do know one thing for certain. If your former employer wants you to file your taxes the way he says, it's going to be for his benefit, not yours.

 

[alucard12]

While far from being any sort of tax professional or even an amateur for that matter, I do know one thing for certain. If your former employer wants you to file your taxes the way he says, it's going to be for his benefit, not yours.

I know. He is trying to get me and a few other people pay the entire FICA on the 1099-MISC. He doesn't know about me doing the taxes yet. I honestly do not care. I just want to know is what I can do to prepare myself against him. I have paystubs showing February is when I got a paycheck.

 

[alucard12]

There are none. There's nothing you can do to prevent people from doing bad things to. You just get to clean up the mess after they do it.



Then you did what you were supposed to do. Keep your records forever. If the IRS ever asks you about, you have those records to back up your return.



Here's how you report tax fraud to the IRS.

https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity
If you don't report it, you have nothing to complain about.

What can I at least do to prepare for the event the IRS comes to me about the 8919 form?

 

[LdiJ]

I know. He is trying to get me and a few other people pay the entire FICA on the 1099-MISC. He doesn't know about me doing the taxes yet. I honestly do not care. I just want to know is what I can do to prepare myself against him. I have paystubs showing February is when I got a paycheck.

You do not need to prepare yourself against him. He is full of hot air. He is trying to scare you into not exercising your rights. Its all a bluff because he has nothing to report against you.

 

[PayrollHRGuy]

To do what he says he is going to do he would have to break yet another bunch of laws. Let him have at it.

 

[alucard12]

To do what he says he is going to do he would have to break yet another bunch of laws. Let him have at it.

I can't get in trouble no matter what he says?

You do not need to prepare yourself against him. He is full of hot air. He is trying to scare you into not exercising your rights. It's all a bluff because he has nothing to report against you.

What if the IRS would find me as an independent contractor for one and a half months? At least, according to him, I received payment for Jan and Feb of 2018.

Now, would handwritten records count as conclusive evidence for anything?

 

[LdiJ]

I can't get in trouble no matter what he says?


What if the IRS would find me as an independent contractor for one and a half months? At least, according to him, I received payment for Jan and Feb of 2018.

Now, would handwritten records count as conclusive evidence for anything?

The odds of the IRS finding that you are a contractor are slim based on what you have discussed so far. However, even if they do, the worse case scenario is that you would have to pay the employer's share of SS and Medicare taxes on that particular income. Its NOT a huge deal. The IRS is really good about setting up installment plans in any scenario, and quite reasonable about it if they have to rule against you in this kind of scenario.

They are far more interested in putting the hammer down against somebody like your boss.

 

[alucard12]

The odds of the IRS finding that you are a contractor are slim based on what you have discussed so far. However, even if they do, the worse case scenario is that you would have to pay the employer's share of SS and Medicare taxes on that particular income. Its NOT a huge deal. The IRS is really good about setting up installment plans in any scenario, and quite reasonable about it if they have to rule against you in this kind of scenario.

They are far more interested in putting the hammer down against somebody like your boss.

What if he lies to them saying I mad $15,000 a year though?

 

[LdiJ]

What if he lies to them saying I mad $15,000 a year though?

He has to be able to prove that he paid you that money. The burden of proof is on him. Seriously, you cannot allow a bully to get away with being a bully just because you are afraid.

 

[alucard12]

He has to be able to prove that he paid you that money. The burden of proof is on him. Seriously, you cannot allow a bully to get away with being a bully just because you are afraid.

I am not afraid. I am wanting to make sure what I had a feeling about is true. He is getting his responses mainly from a person (accountant) that "got him in trouble with the IRS," and thinks we are stupid.

He thinks he is 'Al Capone' in the new generation, which is a disgrace.

 

[PayrollHRGuy]

He thinks he is 'Al Capone' in the new generation, which is a disgrace.

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