I never recieved a check from them because it was a commision sales job and I was on a draw. When the sale happend. I never recieved the money because I was behind in my draw, there for the company kept my money. I never recieved funds from this Company in 2006, Yet they sent a 1099 stating I recieved $12,000. I actualy recieved the commission in2005. Is this legal? I think I am being screwed. I sell real esate. Can anyone help
FLETCHER
Comments
Yes I can help.. you have two questions here:
Is this your income? and should it be in my 2006 1099?
OK.. so you took the money on the Draw, and this commission was paying the draw back… so you may have not gotten the check, but it sounds like you got the value of the money (in the deficit of the draw)… so the first answer is yes this is your income. (so legal this should be reported on SOME YEAR’s 1099)
If you received the commission (I assume a credit to your draw) in 2005, and they are claiming this to be 2006, you should double check to see if they put this on the 1099 on 2005. If they did it in 2005 and 2006, yes they are screwing you, write a letter to them and tell them to amend the 1099 to have 0 income, (keep a copy of the letter… send it certified) and the new 1099.
If they did not put this income in 2005, then they are giving you a benefit, of waiting another 12 months to pay the taxes on something you earned in 2005.
luck
