Tax Fraud.. Options..

[underwater]

I received my W2 yesterday and it was exactly half what I made during the year. When I contacted my previous employer, he stated that I was paid from different company accounts (wired with no paystub) who were not setup for payroll and that he would have to send me 1099's for the rest. He withheld taxes from that pay but never submiited them to the IRS. I told him I would contact the IRS to see if I was OK from a legal standpoint but he stated that if I did, he would have to send me another W2 for this year and that I wouldn't get a return on it until next year. I really need my return. Is what he doing legal? If I file 1099's am I commiting tax fraud?

 

[Innerlaner]

I don't quit understand your question but it is perfectly legal to issue 1099-MISC for non-employee payments, to report miscellaneous income.

 

[underwater]

Sorry for not being clearer in my descriptions. I was a salary employee for 11 months out of the year. My w2 only shows 6 months of wages and he wants to send me a 1099 for the rest. If I am correct I would get charged a self-employment tax if I file a 1099 when I was not self-employed. Also, wouldn't I be liable to pay taxes on what I get in the 1099 even though he already withheld them?

 

[Innerlaner]

The amounts aren't automatically assumed to be self-employed income but if you were an employee the whole time, you should definitely insist that the amounts be reported on a W-2 so that you get credit towards your social security benefits. If you had withholding, it would be reported on the 1099-MISC.

 

[eagle20]

Ask your employer to send you a correct w2 form.