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26 U.S. Code § 7434 - Civil damages for fraudulent filing of information returns. If any person willfully files a fraudulent information return with respect to payments purported to be made to any other person, such other person may bring a civil action for damages against the person so filing such return.
Here is a link with information from the IRS:
How Do You Report Suspected Tax Fraud Activity?
Thanks Everyone!
Thank you, ee-ea. Your information is helpful.
If you suspect this employer of deliberately (and repeatedly) filing fraudulent 1099s, you can report them to the IRS. They will want to hear from someone like you who has inside knowledge as a (former) employee. You can also claim a reward (a percentage of the money they scammed, I think). To report the fraudulent tax filings, fill out form 3949A and then form 211 (to claim any reward). Given how egregious this employer of yours has been, it might be worth the effort.
See IRS page on reporting suspected tax fraud
Hello,
I have the same issue. I have not received IRS letter yet. I am just wondering how did you solve this issue?
Did IRS accept your written statement in 2017?
Thank you
Yes, the IRS did investigate and sent me a notice stating that I owe $0 in taxes. If you encounter a similar situation, you might receive a CP2000 notice. This notice will give you three options. If I remember correctly, the options are: 1) Agree and pay, 2) Disagree and… 3) Authorize someone else to represent you in dealings with the IRS. I chose to disagree and sent a detailed explanation of the situation.
Thank you so much for all of the responses! Very helpful. I am having the same problem: a huge 1099-NEC was filed on me for compensation that I never received by someone who has a a grudge on me.
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