I have read the rules of the irs and believe that thy exercise "right to control enough to be classified as as employer we use there equipment we wear company shirts, we are told when to be at work.How can I dispute this 1099>?
2007-01-01 03:04:10 · 6 answers · asked by erik s 1 in Business & Finance ➔ Taxes ➔ United States
Rather you dispute the 1099 or not, you have to file and pay your taxes on your income. The 1099 just means the company did not withhold your taxes so you get to pay them all.
Yes, according to the IRS you should be classified as an employee. But the Independent Contractor vs. Employee battle is a very gray area of the law.
The way to really screw them (but you still have to pay your taxes) is to go and file unemployment stating you quit because of the Ind. Contractor issue as you were paid as an employee back in 2003 (or whatever). If the unemployment agency and then the IRS decide that you were actually an employee, you former employer could owe thousands of dollars in back taxes, fines and penalties.
But you still have to pay your taxes.
2007-01-01 03:22:21 · answer #1 · answered by Gem 7 · 0⤊ 0⤋
The rules are pretty simple, in the US. if a company pays you over $600. they can 1099 you. If they don't meet that minimum they can't. Contact the Irs for the criteria if you have a dispute, worst case you lose and pay taxes on the money. Either way they will get their money, so they will be impartial in the decision.
It is worth the try, call a local office they might also answer the question online.Good luck
2007-01-01 11:10:27 · answer #2 · answered by Robert D 4 · 0⤊ 0⤋
If they tell you what time to come in, what to wear, how to do your job and require you to use their equipment, then you are an employee and they are required to give you a W-2.
To dispute it, call the IRS and report them, or at least talk to them and ask them the same question you asked on here.
Some companies issue 1099's so they do not have to pay the employment taxes and do not have to carry certain insurances. They do this to save money, even though it is wrong.
2007-01-01 11:17:54 · answer #3 · answered by sylvrrain 2 · 0⤊ 0⤋
What's 1099?
2007-01-01 11:06:01 · answer #4 · answered by Webballs 6 · 0⤊ 2⤋
You should file a complaint with the National Labor Relations Board
2007-01-05 02:59:31 · answer #5 · answered by dcholsted 2 · 0⤊ 0⤋
did they take out taxes from your pay,if so you should get a w-2not a 1099
2007-01-04 17:25:14 · answer #6 · answered by sassie 2 · 0⤊ 0⤋