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    Kenr427's Avatar
    Kenr427 Posts: 1, Reputation: 1
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    #1

    Feb 12, 2008, 07:40 AM
    Dads business sent a 1099
    My step daughters Dad sends her money by depositing it in her checking account, He has his own business and sent her a 1099, She does not work for his company, and I always figured it was a form of support or an allowance, but he is trying to use her for a tax write off. What can she do other than pay the tax? My step son has the same thing, but he didn't get sent a 1099 and is on better terms with him than my step daughter... should he be reported to the IRS?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Feb 12, 2008, 07:49 AM
    Unless he can prove that she performed some service for the company, then this would sound fraudulent. How old is she by the way?
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #3

    Feb 12, 2008, 10:29 AM
    SEC. 7434. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMATION RETURNS.

    (a) IN GENERAL. --If any person willfully files a fraudulent information return with respect to payments purported to be made to any other person, such other person may bring a civil action for damages against the person so filing such return.

    (b) DAMAGES. --In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the greater of $5,000 or the sum of -- (1) any actual damages sustained by the plaintiff as a proximate result of the filing of the fraudulent information return (including any costs attributable to resolving deficiencies asserted as a result of such filing), (2) the costs of the action, and (3) in the court's discretion, reasonable attorneys' fees.

    .. .

    (d) COPY OF COMPLAINT FILED WITH IRS. --Any person bringing an action under subsection (a) shall provide a copy of the complaint to the Internal Revenue Service upon the filing of such complaint with the court.
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