What can be done if an employer reported false information to the IRS?

Full question:

My fiance worked for an individual for aproximately 3 months, he was lucky to make $100-$200 a week. This individual sent a 1099 for aproximately $1400 and then about 2 or 3 weeks later they sent another 1099 for aproximately $3000 +. I know he did not make over $1400, but he was paid by a personal check. How can they do that? Can they be audited or anything to find out if they are lying?

  • Category: Taxes
  • Date:
  • State: Indiana

Answer:

Please see the information at the following links:

http://www.irs.gov/compliance/enforcement/article/0,,id=106778,00.html

http://www.irs.gov/localcontacts/article/0,,id=98274,00.html

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

In the U.S., if you pay an independent contractor $600 or more in a calendar year, you are required to issue a 1099 form. If the total payment is less than $600, you do not need to issue a 1099. However, it's good practice to keep records of all payments made for tax purposes.