As the title says, my former employer lied on my 1099 form. Last year from the end of July to the beginning of December I worked for a very small (just me and the business owner) dog grooming shop as an independent contractor making 40% commission. I ended up leaving because the shop wasn't getting enough business and I wasn't making any money. To give you an idea in the 6 months that I worked there I made a total of just under $4,000 grooming 3-5 dogs per week (most shops get 3-5 grooms per day, hence why I left). The first red flag I got from the business owner while working there is that she always wanted to pay me in cash, she never wanted to give me a check, but I insisted that I needed checks for the purpose of records. My payroll stubs also have no indication of the actual work I did (the number of dogs I groomed), they just say the total I was paid and that I was being paid a rate of 40% commission and not an hourly rate.
So a few days ago I opened the letter the shop owner sent me with my tax form and she is trying to say that I made a total of just over $9,000 while I was working there. I double checked my paycheck stubs and my bank deposits from that time and my total wages added up to just under $4,000. I calculated 40% of the number she put on my tax form and it adds up almost exactly to my calculated wages. So basically she is trying to tell the IRS that she paid me 100% of the profit from the grooms I did, which would give her a bigger tax break but which again, is very untrue. My plan is to meet with an accountant and report her to the IRS. My question is, should I try to confront her about this before I report her? I think that I have all the documented proof I need to show that she is lying on the tax form. I imagine that she has also already reported the wrong info to the IRS, so should I bother trying to confront her or just report her? Also should I get a tax lawyer involved or get into contact with one just in case? Any advice on this would be massively helpful. This is the first year I am filing my taxes as an independent contractor so I'm new to this as it is.
Submitted February 22, 2017 at 11:20AM by Sheepoflunacy http://ift.tt/2lvSo8V
