I have been working off of a draw, the company has been issuing 1099's since 1999. They now say I have not earned the money and want me to sign a note against my property for the amount in dispute
2007-02-27 20:17:22 · 3 answers · asked by l0372001 1 in Politics & Government ➔ Law & Ethics
I wouldn't sign my property over to them. A 1099 is issued for monies they PAID you for work that you did as an independent contractor (self employed). You have to pay taxes on that amount because 1099's are sent to the IRS as well. They can not demand you to liquidate your assets without a judgment from a court (which you will have the right to representation to answer their complaint). You have proof that they paid you for working, unless they can prove that you did not do the work, they'll be taking the loss. If they gave you a fake 1099 for work or money that wasn't done/collected then they will get in trouble with the IRS as well. I'd consult your local legal aid office (to find out your rights), the IRS (for tax advice in this situation), and your local clerk of courts (to make sure there is not a case pending or a judgment already rendered). It is their responsibility as the company that hired you to do contractual work to have a good bookkeeping method, and to factually state income received on 1099's. Disputes are not normally handled in the way they are suggesting.
2007-02-27 20:43:18 · answer #1 · answered by Angi 2 · 1⤊ 0⤋
They should have been giving you a statement at the end of each year similar to a 1040, that you use to file your income tax. If they didn't, you need a tax attorny fast.
2007-02-28 04:56:29 · answer #2 · answered by nursesr4evr 7 · 0⤊ 0⤋
don't understand what 1099 mean
2007-02-28 04:23:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋