Sounds like the IRS is questioning whether you should have been classified as an employee or not. By her 1099ing you, she avoids her share of payroll taxes, state unemployment, workmans compensation, etc., that's a big issue for IRS.
Answer the letter honestly, you haven't done anything wrong.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
