Need Answers. This year 2 seperate trucking companies who are maggott operations at best BOTH sent me "OVERINFLATED" 1099's. One company only paid me $4500 and sent me a 1099 for $16,000 and another company only paid me $1200 and sent me a 1099 for $3700. I do not want them to get away with this, I want them in prision, will the IRS do something other than audit them and make them pay the amount they lied about or will they do whats right and arrest these vampires because it seems to be a common practice these days!!! Please Help!!

Mike S

“ This year 2 seperate trucking companies who are maggott operations at best BOTH sent me "OVERINFLATED" 1099's. One company only paid me $4500 and sent me a 1099 for $16,000 and another company only paid me $1200 and sent me a 1099 for $3700. I do not want them to get away with this, I want them in prision, will the IRS do something other than audit them and make them pay the amount they lied about or will they do whats right and arrest these vampires because it seems to be a common practice these days!!!”----> You can ask the compaies to send you corrected Form 1099s. You need to contact the companies or individuals who sent the 1099s to request an amended 1099s in the case of any discrepancies. Send a second request via certified mail if you receive no response. This step is essential, as the IRS will not assist you if you have not made an attempt to contact the company to request an amended 1099.If that fails, report your income based on the records you have of their payments to you. For example, you might have invoices , checks received or bank deposit slips. If there’s a mis-match between the amount of income you report and the amount of income that the company reported to the IRS, then the IRS will audit your tax return. Simply provide the auditor with documentation for how you calculated your business income, and inform them that the 1099 were intnetionallyincorrect. Then the IRS may audit the companies.Or, yu can send a letter to the IRS with your return;then, They'll then go back on the issuer and require them to provide proof of the payment, like the check with your signature on the back. If they can't, you're all set. Additionally, the corporation may have to pay a penalty for failing to report the correct amount of income on Form 1099-MISC. Under normal situations, the penalty is $15 per incorrect 1099 if the corrected 1099 is filed within 30 days of the original deadline for filing Forms 1099 and 1096 with the IRS. The penalty rises to $30 per incorrect 1099 if the correction is filed by after 30 days but before August 1, and $50 per incorrect 1099 if the correction is filed after August 1. The IRS will waive the penalty if the corporation can show reasonable cause. if the IRS can show "intentional disregard" of the filing requirements or the accuracy of the information, the minimum penalty is $100 per 1099 form. Their best bet is to file on time and make sure they have the recipient's correct name, address and ID number. If they are audited by the IRS and it discovers just 10 instances where they should have filed corrected 1099s but intentionally did not, the penalties could be in the thousands of dollars.