Question:

If a company you work for doesnt send out 1099s does that mean your gettin paid under the table?

by  |  earlier

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what happens if i get busted? do i go to jail? how do i take care of this?

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3 ANSWERS


  1. Contact IRS at 1-800-829-0922 or 1-800-829-1040 or 1-800-829-7650 and request your wage information for the year in question and they will send them to you, you will see if he is reporting the amount to IRS or more likely he is and just fail to give you your 1099.


  2. Just call the employer and let them know that you need the form or a copy of the form, also inform them that you WILL file a tax return using that income and the companies name.  

    Should they refuse, report the income on your tax return and let them get into trouble.  No, you will not go to jail, but sooner than later it will ketch up with you.

  3. If the amount paid is more than $600 for the year, it's a pretty good indicator.  However it's also possible that it got lost in the mail.  

    Not getting a 1099 does NOT mean that you can ignore the income on your tax return, though.  Sooner or later the IRS is likely to learn of it and if you don't report it, you're busted!

    Edit:  You won't go to jail, but the IRS will send you a bill for the taxes due, plus penalties and interest.  You avoid it in the first place by claiming the income on your tax return.  Or if you've already filed without showing it, you file an amended return on Form 1040-X and include it there and pay the tax.  The IRS will bill you for the penalties and interest.

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