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  • Writer's pictureHolly Roundtree CPA

2019 – 08/06

A U.S. District Court ruled that an employer was liable for damages because it had sent false information about a worker’s income to the IRS. In the case, a woman agreed to a verbal employment contract with a company. She twice told her boss that, based on the contract, she should be classified as an employee rather than an independent contractor. The employer disagreed and sent her Form 1099-MISC at year end. The woman argued that the form, which stated that the company had paid her nonemployee compensation for 2018, was evidence that false information was given to the IRS. The court agreed and ruled that the employer was liable for statutory damages. (Vanderbilt, DC FL, 7/24/19)

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