I received a letter from the IRS asking me if I'm a business and what do I do for the company I work for. I'm scared to death since I started seeing stuff on the net about having to pay quarterly taxes, etc. I have no employees, I sell nothing. I just created a business name so I can get paid.
You gotta understand one thing, before I got this job I was on unemployment because a company I worked for for 22 yrs let me go because of "downsizing." Plus my father (to whom I was very close to) died. Than my daughter (who was also close to my father) went into a deep depression, etc. So I've been a basket case ever since and now this.
Answer the letter honestly, you haven't done anything wrong.
I already to the letter to a lawyer who then told me since I hadn't filed as a business in the past couple of yrs that I could go to jail.
Several months passed since I gave this attorney the letter and a thousand dollars (which I really can't afford to do) and nothing has been done.
Than about a week ago I received another (identical) letter asking the same things.
Do you mean I have to file under the business name, while she's not paying in my business name.
I was issued an EIN when I created the business, but my 1099 has my regular SS # and my personal name ONLY. I've never been paid in my business name.
By corrections do you mean I have to file under the business name, while she's not paying in my business name.
I know today is a sunday and you'd rather be spending time doing something else, but if you could answer this one more question I'd really appreciate it.
1) What entity did you choose on the SS4 form 9a? <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/fss4.pdf">https://www.irs.gov/pub/irs-pdf/fss4.pdf</a>
2) Have you been reporting this income on your return at all? And if you did was it on a Sch C ?
So DON'T worry about if it was in the "business" name or your "personal" name. It does NOT matter."
Everyone who's helped with this, please accept my deepest appreciation. You've lifted a very heavy weight off my shoulders.
Thank you very much and enjoy T-day or whatever you do/don't celebrate.
Stop panicking ... if you have been reporting the 1099 income on a Sch C then you have nothing to worry about. But you did say that you and some others were involuntarily switched from employees to sub contractors for doing the exact same job which is illegal on the part of the employer not you. Sounds like someone else turned in the employer but refusing to just accept the employer's BS and not you are being asked to honestly answer some questions to determine if the employer is in trouble NOT YOU.
The IRS will not put you in jail or anything else without your having a chance to make the corrections.