flybywp
Well-Known Member
The penalties for 1099 misclassification are rather steep actually and they will definitely go after the employer. I think the issue is the IRS remains unaware of such violations until they are informed either through investigation/audit or complaints.And that makes it especially odd that they haven't gone after the company itself for the 1099 scam. It suggests that AA either has good enough lawyers to prevent a judgment against them, or that the IRS has a policy of not going after the "employers" in cases like these but only holds the contractor accountable. It seems like the latter may be the case as I have heard of other situations where people who took 1099 jobs were slapped with back-taxes but the "employer" seemed to get away with it.