- 3 - The 1099 that I received from Mr. Vaughan was a bonus for that year. As your records indicate, I was an employee of Mr. Vaughan for several years prior to this time. I realize that the 1099 may have been completed with the notation as non-employee compensation, but that would have been an error on the part of Mr. Vaughan, and not my error. Mr. Vaughan stated to me that the taxes were taken care of. I do not feel that I should be held responsible for errors committed by Mr. Vaughan. I realize that Mr. Vaughan is now deceased, and I believe that the reason that the IRS is attempting to get this from me since [sic] they cannot get it from him. On December 15, 1998, petitioner responded to proposed changes by the Internal Revenue Service and stated that: as I have explained, the bonus was employee compensation, regardless of how it was reported to your office. As I have explained to your office on several occasions, this income was a bonus from my employer and he informed me that he would be taking care of the taxes. * * * I do know that my records for 1995 will reflect that I received a bonus that year and that bonus reflected the pay was for employee compensation. Respondent determined that the $10,638 should be included in petitioner's income. The notice of deficiency contains the following statement: “A bonus is considered taxable income and must be included on the tax return. It is not subject to self- employment taxes nor FICA taxes. We have deleted the self- employment tax and your share of the FICA tax." Petitioner stated in his petition that he disagreed with the adjustments in the notice of deficiency because the $10,638 "was erroneously marked on 1099 as non-employee compensation when it should have been marked as employee compensation."Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011