As the filing deadline gets closer, here is another reminder to file Form 8938 if required.

The thing is, your friend must be prepared to follow through. Fighting this type of situation takes tenacity. He or she must be willing to go-through- with-the-fight or the problem will not go away – not ever. There is no expiration date for income tax collection. If your friend thinks that ignoring this will make it will go away, he or she will find that this will haunt them way into adulthood…like I mean forever.

So here is what your friend should do

1) contact the taxpayer advocates office (google this for the contact info) and tell them what happened. Your friend will need to write out a detailed account of the situation, everything they experienced, what they actually received in pay, how they where abused if at all, I mean everything…. Ask the advocate to put a hold on the account until your friend can contact the company and ask for a corrected Form 1099 showing the proper amount of income.

2) Write a letter to the company that issued the Form1099 asking them to correct the Form 1099 to reflect the actual amount paid. Send it certified return receipt for proof that you contacted them.

3) If by some miracle the company does issue a corrected form, use that form to file a tax return reporting the correct amount of income and pay the tax that is due if any.

If the company does not or can not issue a correct Form 1099, you can argue your case with the IRS through the tax payer advocates office.

I successfully argued Abigale’s case based on research of industry practices, the sales company’s refusal to co-operate, on the basis that she should have been classified as an employee and that the amount reported to her was never actually received.

If your friend is willing to follow through, please have them contact me. There will be work that he or she will need to do and if they are not willing to do it nobody can help..

Otherwise, I am willing to help give advice or represent them if necessary. Personally I would like to see more regulation over this industry and I think that what it (the industry) is getting away with is awful and down right disgusting.!!!!