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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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in 2008 I was employed as a driver for a mail route contractor

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in 2008 I was employed as a driver for a mail route contractor who gave his contract with the usps to another contractor while I was still employed. I have recieved a w-2 from the individual who had the contract originally and a 1099 from the second individual. The amounts they claimed I earned with them are different from the amounts that I show on my bank statements deposits for the year 2008. What should I do?
Submitted: 5 years ago.
Category: Tax
Expert:  Merlo replied 5 years ago.
Hello circuitrider,

You actually have a couple of different issues here.

First, it appears that both of these employers have chosen to treat you differently for tax purposes. The one who sent you the W-2 form is treating you as a regular employee, and has deducted taxes from your check. The one who sent you the 1099 form is treating you as an independent contractor, which means you are now responsible for paying all of your own taxes, including the full cost of social security and medicare taxes.

Since you were virtually doing the same job for each of the employers, one of them has misclassified you. The IRS would be the ones who have to make the ultimate determination of how you should be classified, but based on what you have told me, my guess is that both of these employers should have treated you as an employee and not as an independent contractor. Being classified as an independent contractor will cost you more taxes. You should submit Form SS-8 to the IRS to explain the details of your job, and let them make the determination. If the IRS determines that you should be classified as an employee, then the employer who mis-classified you will need to start treating you as an employee and withholding the proper taxes.

In the meantime, regarding the fact that the amounts reported to you are different than your records, you should request from each of them a corrected form. If they are unwilling to provide you with a corrected form, you need to call the IRS and ask them to issue Form 4598 to each employer. This is a request for a correct form to be sent to you. The IRS will give the employers 10 days to comply or they can be fined.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Merlo and 5 other Tax Specialists are ready to help you

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