AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Question I received a letter from the IRS indicating that in 2007 I did not report $29600 in non employee compensation.I had other work that was on the books for that year which I claimed. I was working off the books for the company for just 2 months for an amount of $2400 per month in cash< which is nowhere near the amount they say I owe. What can I do to help myself out with this situation? I'm not sure how to prove how much I earned during this time. I never received any information from my employer during this time. He was very unreliable paying me weekly, which is the reason I quit working for him.
Answer Tim,
You should send your ex employer a certified letter which asks him to provide copies of checks which support the 1099 information reported to IRS. IRS received a form 1099 and he was supposed to provide you with a copy of same.
If he did not, then you were required to.
IF he does not respond with in a week, then you should report the additional $2400 per month you left off your original on form 1040x.
It better to report all income with this company then to be forced to pay income on an additional $29,600.
The burden of proof in on you. You want to be ablwe to shift the burden to him first. If you are unable to, the best way is to amend the year in question.
