Taxes

[fishinwrench]

I worked as an "independant contractor" for a cable TV company at one point in my life.  Suddenly out of nowhere I was audited and the IRS claimed I was in arrears for over 14k.   I panicked and called a lawyer friend (fishing buddy).  He asked what FEIN# I had given the cable company? 

I didn't even know what a FEIN was at the time, and I told him I never provided anything other than my SSN to them.  

His advice was to not speak a word to anyone from the IRS, and if they called me again to tell them I was being represented by him and to give them his number.  They called, I forwarded them to him.....and it all went away.   You can't claim payment to an independent contractor without providing the contractors FEIN#.   The cable company went on the hook for 7 of us "independent contractors".   

Either KNOW the laws, or have friends that do. 👍

[Terrierman]

8 minutes ago, fishinwrench said:

I worked as an "independant contractor" for a cable TV company at one point in my life.  Suddenly out of nowhere I was audited and the IRS claimed I was in arrears for over 14k.   I panicked and called a lawyer friend (fishing buddy).  He asked what FEIN# I had given the cable company? 

I didn't even know what a FEIN was at the time, and I told him I never provided anything other than my SSN to them.  

His advice was to not speak a word to anyone from the IRS, and if they called me again to tell them I was being represented by him and to give them his number.  They called, I forwarded them to him.....and it all went away.   You can't claim payment to an independent contractor without providing the contractors FEIN#.   The cable company went on the hook for 7 of us "independent contractors".   

Either KNOW the laws, or have friends that do. 👍

Wrong.

[fishinwrench]

3 minutes ago, Terrierman said:

Wrong.

Well then how did I and 6 others get out of paying ?    I was granted a 1st time buyer home loan shortly afterwards.   

[oneshot]

4 hours ago, ness said:

If his tax bill with interest and penalties is only $100 M for 50 years it sounds like a pretty Crappy business. 😄

Two separate deals the Logger have no idea what he made.

We are dealing with HOA that wasn’t claiming what we paid. They did pay property Taxes but didn’t pay Taxes on money they collected. IRS put a lean on all properties.

They was also using money out of our account for personal use.

Also every one of them is Family Members and they have been on the Board for 14 years.

According to our Bylaws they can’t be Family Members and only serve 3 years.

oneshot

[Terrierman]

2 hours ago, fishinwrench said:

Well then how did I and 6 others get out of paying ?    I was granted a 1st time buyer home loan shortly afterwards.   

Don't know.  But what it takes to issue a 1099 is SSN or FEIN, name and mailing address.  I've only been in business for 40 years or so though so what would I know.  But.  Google it if you don't believe little ole me.  The real test of whether one is an independent contractor or an employee is a little more complicated.  Your cable company might not have met those tests.

[snagged in outlet 3]

3 hours ago, ness said:

M=thousands, MM=millions

My apologies.  Forgot you were a banker/accountant.  My dad was. 

[fishinwrench]

2 hours ago, Terrierman said:

Don't know.  But what it takes to issue a 1099 is SSN or FEIN, name and mailing address.  I've only been in business for 40 years or so though so what would I know.  But.  Google it if you don't believe little ole me.  The real test of whether one is an independent contractor or an employee is a little more complicated.  Your cable company might not have met those tests.

Oh I'm not doubting what you're saying.  

I've gotten 1099's many times.  Used to get them from tournament wins and still get them for every insurance job I do.  I was never issued a 1099 from the cable company.  We were originally paid "piece work", we got a certain amount for every pole climbed, every house wrap, every additional outlet, ect.   No talk about taxes was ever mentioned for 3 years.....then boom (surprise!).  

It all worked out in our favor luckily, but my lawyer said it was because they hired and paid us to do "utility work" without requiring us to have a FEIN# first and foremost.   We are/were working hand in hand with the power and phone companies....they weren't allowed to just pay anyone with a truck and some climbing gear to do their installs.....but they did.