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Employer will not report Virginia

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  • Employer will not report Virginia

    If an employer refuses to report earned income, though insisted in paying with a check. Is there any recourse which could alleviate the employees tax liability to the irs for the funds?

    The employee could not have been paid as a 1099 independent contractor as the employee day to day activities were at the sole discression of the employer.

    Basically trying to determine what the best course is for filing returns with the IRS.

  • #2
    Is the employer just not paying the money to the IRS or ar they misclassifying you as an independent contractor?
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.


    • #3

      This is the situation as I can best assess it.

      The employer lives out of her business account. That being everything from her mortgage a new pair of shoes a trip to the movies or paying my wife. I highly doubt that she is reporting anything to the IRS as they have nothing on file for her SSN. Not to mention my wife was never asked for her SSN.

      I beleive the employers mid set it that if the IRS ever comes down on her she is at that point going to drop the boxes of receipts she has on their laps. ( I know this is past the point of retarted though I am confident this is her beleif)

      We requested her W2 at the end of the year which she had said she would provide at the begining of the year. Though she refused and became hostile. I had my wife find new employment.

      Though I am not sure how to proceed forward with filing. Dont know if I can hold her liable for the money my wife owes to the IRS or not. By the definition provided to me from the IRS my wife simply can not be classified as an independant contractor.

      Though the employer never set up a method for witholdings from her check.

      I know I can fill out a specfic form to estimate and report her earnings. Though we will face liability of around 18% of her income. Not to mention that we can not give the exact figure and if we are short in our estimate we could end up with fines and penalties down the road for any shortage on the estimate.

      I suppose we could do nothing. Though my concern would be that when the IRS eventually catches up with this woman. They will see my wife was paid from the womans bank records and will come looking for us.

      Any advice specfically related to how I may be able to send the IRS after her for the witholdings would be great. (I know that we are most likley stuck in the situation though it never hurts to ask.)

      Thanks for your time.


      • #4
        Originally posted by Bruce Qualters View Post
        Dont know if I can hold her liable for the money my wife owes to the IRS or not.
        Not in any legally meaningfully sense of the word. Taxpayers are legally required to report income to IRS on their 1040 at year end. The payer issuing a W2 or 1099 (or not) has not direct effect on the taxpayer's obligations. The taxpayer is required to fully report all earned income irrespective of what W2s and 1099s they receive. If the taxpayer fails to report income, it is because the taxpayer choose to report income.

        Now can the taxpayer get their "employer" in trouble? Sure. File a form SS-8 to IRS along with maybe a statement of what you just said. The problem is that getting the "employer" in trouble in no way helps the taxpayer with IRS. From IRS's standpoint, both the "employee" and the "employer" are breaking the law. It is not a "which party" IRS will go after. IRS will go after both parties.


        It is at least possible in theory that some type of private action could succeed against the "employer". Stranger actions have succeeded. But winning a private action against the employer carries no water with IRS. (Or the state equivalent, assuming that there is state income tax involved).
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)


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