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Resources:
Tax Education:
Bogus 1099 filings Employers
and creditors have been known to file incorrect and sometimes
outright fraudulent 1099 tax forms. These forms can
inflict a lot of damage.
A 1099 form is an informational return
filed by a third party. That is to say, it is filed
by somebody other than the taxpayer in question. It informs
the IRS that the taxpayer has received some form of income, such
as payment for independent contractor services or
debt-cancellation income. If that income is not reported
on the income tax return of the taxpayer, the IRS will assess a
tax based on the third-party reported income and attempt to
collect it. This is a major problem if the taxpayer
never really received the income or received it in a year
different from what was reported on the 1099 form.
1099 forms include 1099-DIV for dividend
income, 1099-C for debt cancellation income, 1099-B for sales
proceeds, 1099-INT for interest income, 1099-Gov for government
payments, 1099-S for payments from real estate transactions,
1099-R for distributions from pensions, annuities, retirement
plans, IRAs, and insurance contracts, 1099-MISC for
miscellaneous income, and there are even blank 1099 forms.
(This is not a complete list of all 1099 forms).
If the experience of our clients is any
indication, the problem is not resolved by simply picking up the
telephone and calling the IRS to inform them that a mistake has
been make. The IRS usually considers the 1099 income valid
until proven otherwise. Proving that income was not
received can be problematic. It involves proving a
negative to an unreceptive audience whose records show that the
income was received.
We have helped many clients with this
problem and know exactly how to handle it. If your efforts
have not been successful, do not hesitate to contact us.
For more information
contact
us at taxhelp@taxdefendant.com
or
Toll Free 866-216-1930
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