My former employer withheld taxes from my paycheck because I filled out and submitted a W4 form to her. Now she is trying to issue me a 1099. She claims that the paperwork was handled incorrectly but after talking with an IRS rep. I know that is a lie. The IRS issued me a substitute W2 for now and I will be sending them an SS8 form. But I don't know what to do or know what to expect. Do I need to consult with a tax attorney? Any other helpful info would be much appreciated.
I'm not a tax lawyer but I would guess since the IRS has issued you the substitute W-2 they are aware now of the situation and investigating your employer for possible tax fraud or other charges.
On the SS8 form there is space for you to explain why you are filing this form. Just be straight and tell it like it is. "I filed a W-4 with my employer and they withheld taxes, copy of 2012 pay stub attached,(if you have one)." "I contacted the IRS and was issued a substitute W-2, attached to this form" (Make sure to maintain a copy of the substitute W-2 for your records)
You can if you feel you need more assistance or reassurance contact the IRS again to see if there is anything else you need to do to protect you from any further tax liability. Today's IRS is a more user friendly agency. I feel they have given you all the help you need to to avoid any further liability. They will I am sure be looking into why your employer withheld payroll taxes, where those monies sent to them and if not why not. If they were sent to them why they issued you a 1099.
Of course if you need reassurance, consulting with a tax attorney is your option. First consultations are usually free. As to whether you need to engage the attorney? I would just make him/her aware and ask that a file be opened in the event you need his or her help. [ adviceman49's advice column | Ask adviceman49 A Question ]
Attention: NOTHING on this site may be reproduced in any fashion whatsoever without explicit consent (in writing) of the owner of said material, unless otherwise stated on the page where the content originated. Search engines are free to index and cache our content. Users who post their account names or personal information in their questions have no expectation of privacy beyond that point for anything they disclose. Questions are otherwise considered anonymous to the general public.