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BizAttorney
BizAttorney, Attorney
Category: Legal
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Experience:  Over 12 years of business and legal experience.
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An independent Contractor who has driven for me for 10 years

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An independent Contractor who has driven for me for 10 years bought me a letter from the IRS stating he owed 16,000 in taxes because I reported he made $100,098. His 1099 misc which I issued him and my copy indicate the amount was only for $ 10,098. One zero has been added somewhere. The IRS has frozen his bank account. How can I help him correct this problem

BizAttorney :

Good evening! I can help you out with your legal question tonight. You unfortunately can only do so much. You can simply give him another copy of what you reported he made on the 1099. You can give him a copy of that and then he will need to check his tax return (which is where the error likely is).

BizAttorney :

You as the payor only have to show what you reported he made. He will have to solve the other problems from incorrectly entering the wrong amount.

BizAttorney :

He will likely be audited and have to provide all of his proof to substantiate his figures.

BizAttorney :

Did you have any other questions tonight?

Customer:

The letter indicates the problem is on my reporting he sent in the correct 1099 does that make any difference my total payout to contractors on m tax return was not nearly that mych.

BizAttorney :

I don't believe it is on your reporting, otherwise you would be getting audited and not him. You can only show the IRS evidence of what you reported he made.

BizAttorney :

Do not give him your tax return, but simply the 1099 that you are required to give him.

BizAttorney :

Giving him any more information than that, would compromise your personal information.

Customer:

the letter indicates he understated his income and that "income reported by Julius brown $100,098" should I visit the IRS in the Morning with him our 1099's agree.

BizAttorney :

Yes, make sure the IRS has a correct 1099 from you. That will help him tremendously.

Customer:

Thanks so much for your help.

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