How a Simple Government Form Can Turn in Embezzlers
Frank Abagnale (“Catch Me if You Can”) advises using Form 1099-MISC
In the video below, 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.
Do not use a 1099-MISC or a W-2 to report taxpayer 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.
Use Form 3949A instead!
Download IRS Form 3949A
For Canadian embezzlement victims – the Canada Revenue Agency has replaced its Form IT-256R with Tax Folio S3-F9-C1.
Embezzlement Concerns? Give me a call.
William Hiltz BSc MBA CET

Hiltz & Associates
and the creator of
Dental FraudBusters.
