My wife worked part time for a company. The business is to setup and operate ramps and portable elevators for disabled people when they go to vote at schools during elections. The bookkeeper of company mucked everything up because she embezzled money and took off. My wife received a 1099-NEC instead of a 1099-MISC. It listed the money she actually received, but did not list the money that was withheld for taxes. We don't have any records showing what was withheld for taxes. Further the company is missing records. I understand that bookkeeper did not report to the IRS what was being withheld from any employee and pocketed the money that was supposed to have been sent to the IRS. I understand that the company is not making any effort to figure out the correct amounts because the bookkeeper also took her laptop which had all the records. My question is that the 1099-NEC appears to state that my wife ran her own business, when she was actually an employee of the company. I concede we are screwed and have to pay the unreported taxes on the income she actually received. But, how should we report her income so it reflects that she was an employee and someone running her own business?
