Then he got angry.
“I have a 1099 from your company for $47,500,” Leo said. “I’ve never worked for you.” 1099 misc taxes
Leo sat at his kitchen table, surrounded by forms in triplicate, and did something he hadn’t done since he was twelve. He cried. Not from sadness. From the absurd, crushing weight of being held responsible for a crime he hadn’t committed, committed by a person who didn’t exist, using a bank account that wasn’t his, all because a piece of paper said so. Then he got angry
“Fill this out,” she said. “But here’s the problem. Axiom already sent their copy to us. In our system, you earned that income. We’ll flag your account, but it takes six months minimum to resolve. In the meantime, don’t file your taxes until you get a PIN.” He cried
The IRS had determined he owed $14,723 in self-employment taxes on the phantom income. If he didn’t pay in thirty days, they would garnish his actual wages—his real wages from his real clients—and seize his bank account.
“What about estimated taxes? I’m supposed to pay quarterly.”