Frank Abagnale (“Catch Me if You Can”) advises using Form 1099-MISC

Mr. Abagnale says filing a 1099 is one of the best options for those who have been affected by embezzlement, and he’s partly right. Turning an embezzler over to the IRS can result in restitution more quickly than taking him or her to court.

But do not use a 1009

Use Form 3949A instead!

Do not use a W-2 or 1099-MISC form to report income from embezzled funds.

W-2s are submitted to report compensation from work performed, and embezzling is not legitimate work.

Form 1099-MISC is intended to be used to report payments made to a “non-employee” for fees, commissions, prizes, and awards.

Best to use IRS Form 3949A instead.

For Canadian embezzlement victims – the Canada Revenue Agency has replaced its previously easy to use Form IT-256R with Tax Folio S3-F9-C1 which not so easy to use. :-(

Frank William Abagnale Jr. is an American security consultant known for his career as a con man, check forger and impostor when he was 15 to 21 years old

Embezzlement Concerns? Give me a call.

William Hiltz BSc MBA CET

Bill Hiltz is the CEO of
Hiltz & Associates
and the creator of
Dental FraudBusters.