1099-MISC Fraud My son got 1099d by an individual who is not affiliated with any business but is an independent contractor himself. This man hired my son to work 6 hours a week to patrol a shopping center 2 nights a week for $10 per hour. My son had to be at the shopping center Friday and Saturday nights from 8-11PM weekly. Initially the man issued a printed statement of hours worked and handed him cash. After a couple of months he just gave my son cash at the end of every month with no documentation. Eventually the man gave my son a uniform and business cards and asked him to solicit other businesses to provide security for. This man is not listed on the state Corporate Division inquiry as affiliated with the business on the cards or uniform. This year the man issued a 1099-MISC with a vastly inflated amount in box 7. When my son asked him about it he was told that he was an "independent contractor" and to go pay his taxes.
My son does not want to claim to be an IC and deduct expenses and file SE as he did not consider himself to be an IC and did not keep track of expenses or report quarterly taxes. My son also does not want to pay income tax on money he did not receive.
He got an extension on his personal income taxes that is due October 15. It is my understanding that an individual can not issue a 1099 and this man was not really affiliated with any business and the 1099 was issued in his own name and SSN. What do we do? |