How to prevent employer report outrageous 1099?
I am not the only one that employer reported outrageous 1099, he won't make correction,
How can I prevent this in the future? Should I make agreement for every check I received? we both sign to make evidence... what is your suggestion?
Comments
document each payment, if he gives you cash, make him sign a form that indicates the date, and amount as well as his name and your name on this receipt
First off, employers don't provide Forms 1099-MISC to their employees, they provide Forms W-2. If you got a 1099-MISC, they are your customer or client, not your employer.
I get a few 1099s each year and one client is notorious for inflated 1099s. It's become a bit of an annual dance where I call them and complain, they claim that it's accurate, and I fax over copies of every invoice, statement, and check that they sent proving that my amount was correct. About 2 weeks later I get an updated 1099-MISC from them. Several times they didn't cancel or correct the original one, so the IRS had double income reported. That followed with a CP2000 notice a couple of times (most years it's not an issue as I have a fair amount of income that is not reported on 1099s so the Schedule C gross receipts is more than my total 1099s) where I repeat the dance with the IRS.
You fight this the same way that I did, with meticulous business records. Keep copies of all contracts, invoices, statements, and checks received. Reconcile every dime to your cash receipts journal and then to the bank deposits. Then when there are questions, you have proof at your fingertips.
Keep good records. Make a copy of every check you receive and keep those copies a very long time.
You shoudl keep good and accurate records of what you were paid and when.