I was in a collection agency partnership (LLC) with a CPA. He obviosly was the Tax Matters Partner who was majority owner 51/49. I was paid as contract labor as President of the LLC. I decided to resign in Jan 2012 and he retaliated by filing a false 1099 for 2011. He overstated my income by $25k. Looking at the General Ledgar he adjusted amounts from "collection expenses" (100% valid via bank statements) and added them too "contract labor" in addition he has lumped in amounts labeled "general journal" and when i try to match the amounts and dates w/ whats on the bankstatemets its not adding up. He refuses to correct the 1099 and refuses to give me any back-up as to the amounts labeled "general journal". I am thinking that he has no back-up and is banking on me to just accept it. Isn't it illegal to file a false 1099 and represent to the IRS that I had more taxable income than I received? I know I need to itemize my income to show the truth. Is there a form I need to fill out? Is there a way that I can use the IRS to make him validate his 1099?

Also, in 2010 he did my personal tax returns. He 1099 me for the collection work I did for his CPA firm but not our LLC ($5k worth).He told me at the time that since he is taking 100% deduction for profit and loss that he didnt have to 1099 the $5k to me even though the LLC 2010 return shows the $5k as contract labor.[B]Do I need to amend the return? How would the IRS view him intentionally not reporting the $5k? Was it illegal for him not to report?[/b]