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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
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Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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I was instructed by the IRS to report embezzlement by a former

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I was instructed by the IRS to report embezzlement by a former employee on form 3494A, and not a 1099, because sending a 1099 to a receipiant who has also received a w2 from the same company can cause conflict. They referred me to Rule 77-464. My company's CPA says that this is incorrect, and that we have to send a 1099 to the former employee, because he is filing a form 4684 to claim a loss for my company, to meet the requirements of sections 6721 and 6722 of the IRS code. So - when we send the 1099, against IRS instructions, will this be likely to triger an audit? My company is not filing criminal charges against the former employee.
Submitted: 5 years ago.
Category: Tax
Expert:  ShawnA replied 5 years ago.

Shawn P Adamo :

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.

Shawn P Adamo :

I agree woth your CPA. As a CPAm yself i would file a 1099. This should in NO way trigger an audit.

Shawn P Adamo :

God bless you for being as forgiving as you are. i'm not that sure I would be as charitable.

Shawn P Adamo :

If this does not answer your question please let me know. Also let me know if you have additional questions.


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Shawn P Adamo :

oops. Sorry I see you have entered the chat.

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