This is a true story, straight from the IRS. (And if you ever receive a fraudulent 1099, this new article will help you.)
The facts of the story…
An auto dealer sold a car to a customer. The next day the buyer got a call from the dealer asking him to return to the dealership and change the agreed “no-interest” loan to an interest-bearing loan.
The customer obviously said “no way” which angered the dealer. To retaliate, the dealer voided the vehicle registration. Then he sent his customer a Form 1099-INT for $2,997 of interest income.
So what did the outraged customer do about the fraudulent 1099?
He got even big time! How? You’ll find out and also learn how to protect yourself when you read my new article titled Dealer Got Mad, Sent Customer a Fraudulent 1099 to Get Even.
How the car owner struck back.
A story of sweet revenge.
- The buyer wrote the IRS and explained the situation. The IRS responded that the 1099 was totally bogus and the car owner didn’t owe a penny. You’ll get all the details when you read the full article.
- The buyer learned he could sue the dealer. The IRS explained that under Internal Revenue Code Section 7434, the buyer could personally bring a court action against the dealer for willfully filing a false information return. You’ll get the whole story when you read the full article.
- The dealer faced some other big problems. He was out $2,997 of interest income that never got paid, he had to reduce current-year profits by the imputed interest amount, and he had to recognize imputed interest-income as the payments were made. You’ll find out more when you read the full article.