Important Tax Warning

Beware of Fraudulent 1099 Forms

Warning

Some businesses issue fraudulent 1099 forms to individuals who never performed services. Do not use these forms.

You Do NOT Need a 1099 to Report Income

Some cash earners mistakenly believe they need a 1099 to report income. This is wrong.

  • A 1099 can ONLY be issued by the actual payer.
  • If a payer forgets to issue a 1099, you can still report your income without one.
  • Obtaining a fake 1099 from someone who never paid you is tax fraud.

Consequences

  • IRS Penalties: 20% accuracy penalty or 75% fraud penalty.
  • Criminal Charges: Tax fraud is a federal crime with potential imprisonment.
  • Social Security Fraud: Using fake 1099s to earn 4 SS credits is extremely serious—expect prison time, benefit forfeiture, and permanent disqualification.

Our Policy

Copper River Tax refuses to provide services to:

  • Any individual who uses fraudulent 1099 forms
  • Any business that issues fraudulent 1099 forms

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered tax, legal, or financial advice. Tax laws and regulations are subject to change, and individual circumstances may vary. Always consult a qualified tax professional for specific guidance regarding your tax situation. Copper River Tax is not responsible for any errors, omissions, or reliance on the information presented.