TLDR; previous employer didn’t issue 1099’s and a background check for a financial services company is asking for them, if I can’t produce them, will this cause any issues?
I am a recent college grad that is going to work in a large financial services company. The firm is conducting a background check and is asking for a 1099 for the first and last years of employment at a non-profit, as I was considered an independent contractor.
The first year I worked I made less than $600, so I was not issued a 1099. However I was paid in cash and the non-profit doesn’t keep good financial records, so there is almost certainly no record of me working unless I still have some old emails of my schedule (started working there 9 years ago). I am unsure if this money was reported on a tax return, most likely not.
The most recent year I worked there I earned more than $600 and was not issued a 1099. I still reported the income on my taxes on a schedule C.
I have asked in the past about a 1099 being issued and the response I have received was that the non-profit was not issuing one. I still reported the money on my taxes so I never thought I was doing anything wrong. Now I feel like not having these records could cause issues on the background check. I understand these kinds of background checks are more extensive and they look more closely at your financial actions. My worry is I would be at fault for working for a company that is involved in some kind of financial wrong doing.
How much of an issue could this pose?
Extra reading: My theory is that the non-profit is telling the IRS they didn’t pay any independent contractor more than $600, and will claim that of the 20 or so people in my role all made less than $600. In reality, based off of the weekly scheduling, you can see that only a few people worked most of the hours and many people worked only a little bit. So my guess is they are taking the amount the few workers made, and spreading it out over the rest of the workers so we all technically made less than $600 without them owing employment taxes.
Submitted August 16, 2019 at 08:19PM by fakethrowaway25 https://ift.tt/2P0tbWy
