Bonita Springs, FL asked in Tax Law for Florida

Q: I received an under reporting notice for my 2017 taxes. I was never paid a dime by the company that issued it.

I was sent an income under reporting notice by the IRS for my 2017 1040. The 1099K was reported to IRS from a credit card processing company I never did business with. I called the company and they admitted I had no account with them. The EIN on the 1099K belongs to a former payor. How do I fix this?

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2 Lawyer Answers
D. Mathew Blackburn
D. Mathew Blackburn
  • Tax Law Lawyer
  • Englewood, CO

A: They should issue a corrected 1099. If they won't you'll have to appeal and then file in US tax court and subponea them.

Bruce Alexander Minnick agrees with this answer

1 user found this answer helpful

Bruce Alexander Minnick
Bruce Alexander Minnick
  • Tallahassee, FL
  • Licensed in Florida

A: Warning: If the relevant facts are true--i.e., that you failed to report taxable income FROM ANY SOURCE--you will be unsuccessful arguing that you do not owe taxes just because the EIN someone used is wrong.

If you did any business with "the former payor" and if that relationship caused you to understate your taxable income you best just own up and pay the taxes--and the penalties and the interest owed to the IRS.

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