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My previous employer issued a false 1099, and won't fix it, what can I do?

Los Angeles, CA |

I was hired and worked for a company as a employee. There was a brief period when the Co. had a lot of issues in accounting, they were not handling payroll correctly. An outside company handled payroll but the company I worked for also had the option of calling in and getting an employees deductions and issuing an in house check. The issue started when our Co. would call in and ask for the deductions but not specify to our payroll specialists that they in fact were going to do a in house check thus the payroll company not submitting the tax withholding. My payroll check was given to me with taxes taken out ,this happened twice and now they're sending me a w-2 & 1099. Can they do that? How can I fix this because I don't want this to affect my taxes. The amount on the 1099 is for $1000

I would like to add that since I was misinformed by my tax preparer I went ahead and just submitted my tax refund on Friday after he told me it wouldn't make a difference including the 1099. I noticed it obviously does and would like to rectify the situation.

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Attorney answers 1


First, I suggest that you sent a certified letter to your employer asking that the errors be corrected and corrected W2 be issued within seven (7) days.

Second, if the employer fails to correct the w2, you can report the inaccurate w2/1099 online on the IRS website. If you fail to do so, the government will charge you tax on the full amount claimed by your former employer and allow the former employer to take an undeserved deduction in that amount.

Third, your former employer is apparently misclassifying you to avoid payroll taxes and forcing you to pay self employment tax. This may give rise to a wage/misclassification claim which you can report online to the Division of Labor Standards enforcement and/or pursue with an attorney.

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