Taxpayer asks:
3 years ago I worked for a company and was W2′d, I quit after 3 months. And just yesterday the IRS sent me a notice tht I owed them $4200. I have never owed $ to anyone or have been late on anything in my life so I was shocked, I called them and they went down a list of my income for the year, everything matched except for 1, the company it was issued from I recalled the name as my x bosses personal company, he 1099 me $10620 on money I never made, I didn’t receive any funds at all and I am 100% sure this is fraud. The IRS put a lien on me, even though I find out abt this yesterday for the first time. I tried contacting my x boss but he wasn’t cooperative. What should I do?? My perfect 800 fico is now ruined, and I am stuck with a 4200 bill…pls give me some advice. I appreciate your help.
Taxgirl says:
Hmm. This is puzzling. For one, it’s odd that you’ve not received a notice before you were liened. The IRS doesn’t work that way. So either something got lost in translation or perhaps the IRS has some incorrect information for you (old address, perhaps?). I would definitely call the IRS and get that sorted out.
As to the bigger question regarding what you perceive to be fraud on behalf of your former employer, there are a couple of things I’d recommend. First and foremost, get an attorney. This sounds bigger than something you can take care of on your own. Next, you would need to contact the company and ask for an explanation of the 1099, noting that you didn’t receive one (or the money associated with it); again, since you indicated that the boss was not cooperative, this is best handled by an attorney. If there isn’t a good explanation from the boss, I’d notify the IRS that the 1099 was not correct and they will likely conduct an investigation if you have sufficient information.
I don’t know that I would label this as fraud until you have some better information as to what exactly happened. In other words, while it feels like they’ve done something awful, let a professional sort it out. Don’t report the company for tax fraud (it will appear malicious) and don’t try taking the law into your own hands. (This is where you’re probably all hearing someone say “Take ‘em to court” in the back of your mind a la the old Wapner days on The People’s Court.)
Good luck.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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