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Discussion Forum Index --> Advanced Tax Questions --> 8919 - I know we should, but how?
Discussion Forum Index --> Tax Questions --> 8919 - I know we should, but how?
LJACPA (talk|edits) said:
| 8 April 2008
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| Client started work as construction supervisor in 2007. 'Verbal' agreement to pay fixed amount plus auto reimb and business owner agreed to withhold 30% for taxes. Checks issues weekly for exact same amount. Starting in mid-year, client comes to me to be sure 30% was adequate and the questions begin. Check stub - no. Record of pay/withholding - no. Nothing in writing. For the following weeks/months client continues to request this info, comes by now and then to update me and I tell him to insist on a checkstub or anything in writing showing that taxes are being withheld and actually remitted. Nothing. This goes on till end of 07 (client still to this day believes the guy means well and will make good. Right!) when housing market woes hit and client gets laid off. Finally, gets 'verbal' info that although he received only 'net pay', no taxes, payroll tax returns, nothing has been done. Boss tells him that he's not going to issue 1099 and of course no W-2, but will return the $24,000 'withheld' taxes as soon as he can. On 4/8/08, he's still planning to make 'good'. Now, we have Sch C income (no choice) and about $15,000 fed/state taxes due. This would be classic 8919 situation, except nothing in writing. Worse yet, do not have a FID # for business. Is there any hope? Thank you.
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Solomon (talk|edits) said:
| 8 April 2008
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| Review a SS-8 and have client complete and mail it to IRS. Check the box on Form 8453 that he has done so and not received a response as yet. You can then use a 8919. I gather the client believes he was an employee (based on your post it surely sounds like it) rather than an independent contractor.
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JR1 (talk|edits) said:
| April 8, 2008
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| Lynne, why haven't you suggested that he march his butt into your department of labor? Let them roll on this before everyone's flown the state.
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LJACPA (talk|edits) said:
| 8 April 2008
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| Jeff, it's like leading a horse to water... I've tried to convince him for nearly 8 months that something isn't right and warned and warned and warned, but he continues to trust the guy. He is currently working with an attorney to pursue this and finally made an appointment with the DOL this week. This form was new to me and just thought I get some thoughts. Thank you for the responses.
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