| | Miscellaneous Income-1099
My friend was working through a contractor and he used to give him salary and some amount as expenses on which he don't have to pay any taxes and neither do the friend.
But in this scenario,he was offered full time job by the company in which he worked as contractor.And on 31st December he joined as full time worker and inform his contractor also well in time.
Now the problem is that his previous employer send him form 1099 containing all miscellaneous Income which initially he used to pay as expenses.And now he is shocked as he has to give huge amount of taxes on that amount.His previous employer is not responding to it and now he is in trouble.
Now the question is that how can he save taxes on that amount or how can he lower the taxes on that amount??
Please help.............he is in real tension.