In 2021 I paid a contractor appx 40k for home remodeling work, materials, etc.
He is undocumented, but is authorized to work in the US.
Without getting into every little detail, I'll just say he took advantage of our generous, trustworthy nature and naivete and managed to steal over $16k from us. He was paid the $16k to complete a final job for us.
After receiving the money, he would schedule time to get started and continually change it or not show up. He o made excuses over and over and it took us a while to realize he wasn't coming back. At that point, 2021 taxes had been filled.
He played the long game, did and said everything right, always showed up, and did beautiful work. We actually came to think of him as a friend. But in hindsight, it was all fake. It was simply a part of his plan. He gained our trust, and yes we were naive and paid him far too much up front. We know that now, so please don't spend time making us feel worse.
I've done done some research and I am fairly certain that taking the money and not returning is much more serious than doing a bad job and not fixing it. In fact, I'm 99% sure he committed the crime of fraud, specifically what's called Breach of Trust in SC.
From my research, I also do NOT think I was required to give him a 1099. However, I believe that the IRS will accept a 1099 anyway in an effort to calculate the appropriate tax owed. After doing what he did and hearing a few similar stories from others, I have my doubts he reported little, if any of what we paid to him as income.
I managed to get him to call me twice on a recorded phone line (legal in SC) and I clearly got him to admit to taking the money. I got him talking and let him "explain" to me what he said the $16k was for. The fact that I made him sign very basic contracts and the memo line of the checks clearly state what the money was for didn't seen to matter to him. His explanation was completely ridiculous. I also had him let me repeat what he said to make sure I understood. I wanted to give him every opportunity to tell on himself and he did just that! He did an amazing job of incriminating himself.
My questions:
1. How/Can I still file a 2021 1099 form with the IRS without paying a huge fee?
2. I have found his full legal name and I'm 99% sure I have his current home address. I found two different birthdates listed on traffic arrest records. But how do I file without his ITIN and not knowing which birthdate, if either, is accurate?
3. Legal action:
I know I have all the evidence I need to easily win a criminal and civil lawsuit against him, but due to the amount of money involved, I can't sue him in Magistrate's, or Small Claims Court.
What would an attorney charge just to file the case? And would an attorney even take the case knowing I'm not going to get anything more than a judgement. I'm guessing the answer is yes, but I'll be left to pay a big bill leaving me out of even more money.
I know he is unlicensed by the state labor/licensing board and has done work in the past that requires a license and a permit. I'm sure he is still doing so.
I also know he does not have a driver's license, that he has been arrested multiple times for not having a license and/or insurance and for having multiple drivers licenses and license plates in his possession.
I'm going to notify every police department and other governmental agency in the county in hopes that I can stop him from doing this to someone else. I know the VIN number of his truck but not the license plate number. The forms I've found thus far to notify police departments ask for his license plate number and birthdate. I'm going to request arrest records in hope that that his plate number will be listed on one of them.
I apologize for this really long post. There is actually a LOT more to the story, but I'm trying to limit it as best as I can.
Thank you SO much just for reading my entire post. If you have any ideas or advice that might help me with any of the issues mentioned above, I kindly ask that you share them with me.
My wife and I are feeling so many emotions. We can't even imagine doing what he did and we made the assumption that everyone else feels the same way. We tried to help someone we thought was a great guy (more than just the remodeling work mentioned above) and our efforts to help someone have cost us dearly.
I would really appreciate all the help, guidance and advice you have to offer and hope to hear from you soon. I just know there is a person or two or there that have the answers/guidance I need!
Thanks again and take care,
Charles
