AccountingBLOCK - Tax and Accounting Forums

Hello. I hope this is the proper place to post this question. If not, I apologize.

I presently work with two realtors on a part time basis. I receive $300 weekly to perform a number of duties involving computer work and general IT support. The agreement we had when we started was that I'd be an independent contractor. I have no problem setting aside money and paying my own taxes at the end of the year.

I was under the impression that because I was an independent contractor I'd receive a 1099 form from them. I have had several friends who worked in the same capacity for other entities and they've informed me this is what they've experienced.

The first year they provided me with the 1099 form late, but without any issues.

This year they dragged their heels. They at first outright ignored my initial emails requesting the form. Then when I started asking them over the phone and in person they consistently "forgot" to purchase the forms at Staples. There was a point where I was told one of the realtors "forgot" the fully completed form "at the house in Maine."

This went on several months after the month they were supposed to have given it to me.

Since I knew how much I made because of the receipts I drew up for my own benefit I filed my federal tax return on time as I was very annoyed with their antics.

Because of some probably unrelated income rejiggering (my wife and I incorrectly filed our federal tax returns, so our state which we just moved to is auditing us). The state has requested that I send them my 1099 forms to prove that I made my roughly $15,000 from them in our former state.

I recently rerequested my 1099 form because of the audit. They're now claiming that they shouldn't have to give me a 1099 form. That I'm not an independent contractor, but my own consulting business. That I shouldn't receive said form from them because they don't have to provide the landscaping business that mows their lawn a 1099, or the newspaper for their advertisements.

They claim that they spoke with "two accountants" who both said they they shouldn't give me said form.

My wife, who has a bachelors in accounting says otherwise. A friend of mine worked in the exact same capacity for a building contractor (as a draftsman) says otherwise.

I essentially receive a salary every week. I do not have a business ID, I do not belong to a chamber of commerce, nor do I seek other individuals to "consult." I'm also employed elsewhere full time.

My questions are:

1. Do they have anything to personally gain from not giving me a 1099? My years in the real estate industry has taught me that realtors are snakes who will exploit pretty much anyone if given the chance.

2. Am I really a "consulting business," even though I essentially receive a part time salary?

3. Are these "accountants" they've spoken with (whom I don't know) correct? Or is my wife and friend incorrect?

Any answers would be appreciated.

Thanks!

Be careful how you say things. You say you're an independent contractor in one statement and in another you say you essentially received a salary every week. Be consistent and accurate.

They have nothing to gain, only to lose. They are required to file a 1099 on non incorporated entities and exposure themselves to a small penalty if they don't file as required. I say small because the penalty is like 25 bucks per each not filed. So if only one it's not much but it could add up to a much bigger number depending on how many they should have filed.

That said, you can't force them into giving you one. Just tell the state that the company refused to provide you with one. Show them any schedules and correspondence if you have any and also show them the prior years 1099 and tell them nothing changed in you status. Your additional substantiation is that you included this amount on your federal return and paid all the associated taxes due.

Agreement with Pat.

Verbiage indicates potential third-party utterance (out of court admission) by ghale, employer-employee relationship with: "salary",
"I essentially receive a salary every week", is evidence of an employer-employee relationship.

"That I'm not an independent contractor, but my own consulting business." An incoherent statement, "my own" = I.C.

"I do not have a business ID". False, your Soc. Sec. number is your Sole Proprietor's "business TIN".

Re: Forcing Issuance of 1099
Visit state tax authority website, telephone tax court clerk and request subpoena via fax. Issue subpoena
to out-of-state party as subpoena duces tucem, or in lieu, discovery request for business records. Consider
second subpoena to Realtor's bank and Broker as discovery tactic. We deploy similar techniques to gain compliance
or obtain admissions. Remember, the party subpoena's option is to cancel personal appearance in lieu of delivery of
certified business records, usually mailed or faxed directly from source(s) to interested party(ies).

Realtor(s) contracted with you, or your business entity, description indicates nonentity SP, while
involved in interstate commerce*. Claim Realtor(s) were actively engaged in business in Maine
to assert jurisdiction for bank records or attempt to rattle their cage with an adjudication of contempt
of court for failure to comply with subpoena. USPS certified mail service of subpoena acceptable, local sheriff
deputy ($50) = dead drop on force of will and psychological effect. I find cops presence AT PLACE OF
BUSINESS eradicates snob attitude.

* Assert Quill jurisdiction: http://www.law.cornell.edu/supct/htm...4_0298_ZS.html

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Issue of Corp v LLC and elimination SET is discussed within forum:
http://www.accountingblock.com/video...-compared.html

If your accountant suggested SCorp over LLC AND failed to administer to SET filings, consider
converting to LLC to eliminate SET.

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Of course the worst case scenario for the former company would be if "you claimed (and were correct)that these were actually wages". Penalties and Interest add up fast for misclassified wages. If they have any exposure in this area it would be self defeating to refuse you a 1099. But then again, stupid things are done daily.