A 1099 filer who included restrictive language on a check gets a break from an appeals court. After two insurance agents got into a dispute over the sharing of commissions, one sent the other a check for less than the amount the payee sought but put language on the back of the check that any endorsement constituted full payment and release. The payee never deposited or cashed the check,
nor did he tell the payer that he rejected it. After the payer issued him a 1099 form, the payee filed suit, accusing the payer of willfully filing a false information return and seeking damages. In 2014, a district court ruled the 1099 filing was fraudulent. An appeals court has sided with the payer and reversed (Shiner v. Turnoy, 7th Cir.).

Disagreement about Your Commission?

by | Apr 4, 2017 | Tallahassee Tax Service, TallyTaxMan | 0 comments