I'm looking for some advice here, I'm very bad when it comes to this sort of thing... In 2014 I was working for an employer who claimed me as a 1099, andi should not have been. I had a set schedule, machines were provided, etc. (I work on custom cars/race cars). Overwhelmed by the thought of taxes I filed for an extension, and forgot about it. I was sent a fine from the IRS stating I owed $551 in taxes for 2014 plus their fines and interest... Totalling about $720. (This may not seem like a lot of money to some, but to me it is.) Now I filled out, but haven't submitted, a SS-8 contesting my 1099 status, then a 8919 form for uncollected SS and medicare... The total, after calculating my yearly pay, for the 8919 was $2419!
My questions here are should I just suck it up and pay the first amount due ($720) or will I be hit with additional charges since the IRS would still think I'm an independent contractor? I have a drawer full of receipts from tools and other deductibles from 2014, is it too late since they sent me a fine to claim them? Contesting the 1099 status or just paying the fine and staying as 1099... Which will cost me less?
Any information at all on this matter will be greatly appreciated. I'm a humble man who works with his hands, finance and dealing with business matters like this stress me out in ways that don't seem rational. Thanks for your help.
Submitted January 25, 2017 at 08:59AM by GINGERMACHINE http://ift.tt/2jwYkMV
