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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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Can I sue a someone for sending me a false 1099 knowingly

Resolved Question:

I lived with a man for approx 10 years. He is a tax accountant and has been for 30+ years. When I left him, he was angry and sent me a 1099 for >$15,000 for the tax year of 2005. After a long and frustrating battle with the IRS, I found out this week that they had decided in my favor and added no additional income or liability to me. Do I have any legal recourse against this man? When you answer, please assume that the following are facts: 1) His actions were nothing but vindictive. 2) The 1099 was false. 3) Per the IRS, he signed a document confirming that he had given me the money when he did not. 4) This ordeal was a nightmare for me.

Thank you
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

The Taxpayer Bill of Rights 2 (TBR2) was signed into the law in 1996.

TBR2 gives you a right to pursue damages of not less than $5,000.00 from any person who provides a false 1099, W2 or other information return to the IRS.

You have up to the later of six years or one year after the date the fraudulent return would have been discovered by the exercise of reasonable care to file suit. (IRC 7434)

I would suggest you to consult with a local attorney. All legal fees should be included in the claim.

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