make sure tipping off the IRS doesn't also land boyfriend in trouble.

Wait. If he's not having taxes taken out, then maybe he is a contract employee instead of an hourly employee. In which case, a whole different set of rules apply. Calling the IRS etc. will get them to scrutinize your boyfriend too. Has he been paying his taxes? (Don't answer that.) You might want to skip the IRS angle. This is getting messy.

1/3 of my income is contract work. You better be declaring it because your employer will, that is why you get a Misc-1099. If you make less than $800(?) the employer does not have to issue a Misc-1099. If you get cash the employer is most likely not declaring it either.

@monnie: Boyfriend hasn't been able to get taxes done yet, he's gonna have to take 'em to a professional because they're too complicated. He will declare it on his income tax return though.
@dana: the funny thing is, the guy claims to be a good x-tian and is always talking up what a good person he is.

In my experience, people who talk up how good they are, are generally more interested in appearing to be good than in actually doing any good in the world.

Well he was required to be there certain hours, but only got paid flag hours which is the way almost all shops pay. He usually gets a W-2, but this guy didn't take taxes out and gave him a 1099. The verbal agreement was he would be an employee with benefits. The benefits never happened, and he tried to get the employer to take taxes out, ect all last year. It was never agreed that he would be a contractor. If he were a contractor, why would he be required to work certain hours if he's getting paid by the job?

That may have been the verbal agreement, but looks like he was a contractor and his good will was abused.

If he got a 1099, then the paperwork is saying he's an independent contractor. That could be a big problem if no taxes have been withheld. There could be a huge tax liability owed by your boyfriend. Independent contractors have to pay all the various taxes and social security, etc.

Did he fill out a W4 when he started working? Was there any paperwork involved when he started his job? The IRS will not be too happy with the boss if your BF filled out a W4 when he started, and no withholdings were made. But if that paperwork wasn't filled out, then the IRS will be looking at your boyfriend to come up with the taxes.

This is messy.

to actually find a good lawyer, you can

1) ask people you know in your town for referrals--you want someone local, after all
2) call the local bar association, ask them for a couple of names of employment attorneys
3) go to findlaw.com and MartindaleHubbell.com and search for info on those lawyers. M-H is peer rated
4) visit them and see if you think they are knowledgeable and their fee is fair

It can get worse. If you're a contract worker, the IRS requires quarterly pre-payments on your expected tax liability unless you can reasonably show you didn't expect to have any tax liability based on previous returns. If they start scrutinizing the boyfriend, they could not only come up with a large amount of taxes they think he owes, they could also slap him with penalties for not paying it "on time" throughout 2010.

Leave the IRS out of it. He's quitting his job, he's got a better one... just walk away from it.

And hope they don't invite themselves into it. If the boss reported that 1099 to the IRS, then they know, and they will expect taxes.

Dern. Boyfriend plans on paying his taxes correctly, that is why he is going to go to a pro to do them. Boss never got the paperwork for Boyfriend to fill out, just kept blowing it off.

If the boss issued a 1099, seems like he never intended on doing it any other way and/or he's covering his ass. The road to hell is paved with good intentions, but the IRS doesn't need roads and is rarely interested in intent. tread carefully. How was your boyfriend paid?

Employee vs. Independent Contractor – Seven Tips for Business Owners

As a small business owner you may hire people as independent contractors or as employees. There are rules that will help you determine how to classify the people you hire. This will affect how much you pay in taxes, whether you need to withhold from your workers paychecks and what tax documents you need to file.
Here are seven things every business owner should know about hiring people as independent contractors versus hiring them as employees.

1. The IRS uses three characteristics to determine the relationship between businesses and workers:
   • Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
   • Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
   • Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
2. If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
3. If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
4. Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
5. Workers can avoid higher tax bills and lost benefits if they know their proper status.
6. Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
7. You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer's Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530? These publications and Form SS-8 are available on the IRS website or by calling the IRS at 800-829-3676 (800-TAX-FORM).

Excellent info!

I guess to drop a dime on the employer, and hope to dodge paying the taxes all himself, he would file an SS-8. But that would certainly bring the IRS to the door. Which may be good, or bad, depending on what the IRS does.

Form SS-8 is interesting. The IRS asks a lot of detailed questions about the relationship in order to determine the worker's status.