That is a pretty hefty piece of change. If I am not mistaken, 1099's can only be issued for amounts paid in the past year, and not be retroactive, but let me check on that to be sure. I'll get back with you shortly. As far as the IRS is concerned, if they receive a 1099 from the employer with missing information, and the employer tells them that you refused to provide it. They will investigate the matter based on whatever information they have. It could take a while for them to conclude the investigation, then again, it may not take them long at all.
Let me also mention that the IRS is cracking down on employers who pay their employees or independent contractors under the table. Also, they are cracking down on employers who classify "employees" as independent contractors. There are rules for each, an employer can't just decide to pay someone as an independent contractor to avoid paying employment taxes. The IRS has recognized this as a growing issue, now they are taking steps to make sure that employers are in compliance. This is one of the reasons your employer is now asking you for your information. So, that he could be in compliance, at least to a certain extent anyway.
The 1099 is for payments made during the past year. It is not retroactive.
File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year.
At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8);
At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
Any fishing boat proceeds; or
Gross proceeds of $600 or more paid to an attorney. See Payments to attorneys, later.
General Information to know:
Following is an excerpt from an article relating to "Independent Contractors".
ABOUT THOSE INDEPENDENT CONTRACTORS
The government has been paying more attention in recent years to the issue of independent contractors, and whether some businesses are trying to avoid Social Security and Medicare taxes by classifying employees as contractors. A business that does that is violating the law.
Becourtney says many employers call part-time workers independent contractors. But the definition of an independent contractor doesn't have to do with hours worked _ it's all about how much control a business has over the worker. The IRS puts it this way: "The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done."
Control is the operative word. If a business can control where the work is done, the hours worked and closely supervises the work, then this is an employee.