W2 Vs 1099 employment? Tell me the pros vs the cons of each.

You are playing with words. Because of your wordplay, I will agree to a point. People sometimes confuse criminal with administrative actions. The IRS won't put you in prison for refusing to pay due taxes IF you have filed and simply are refusing to send in a check with the return. However, they are going to lock you down in ALL aspects of your life that deals with finance. They will levy your bank accounts, Place liens on real estate holdings and maybe even garnish wages. I know of a guy that operated a small business in Kentucky that the IRS just closed him down. To be honest, by the time the IRS is through with you prison might not sound all that bad!

 

No word play.

You can get jail time for filing a false return and perjury .

As I said ,

if you file an accurate return and just don’t pay the money , they is NO jail time.

but if you have any assets that will seize them .

I used to work with a guy that owed the IRS money, he would fill in an accurate return showing how much he owed n
And he would staple a $20 bill to the return and mail it.


He had no assets , he lived in a mobile hole in his grandmothers land.

the IRS visited his employer and threatened garnishment , and he just told them
That if they did that, he would quit work, and get on welfare. Except now the govt would be paying for his food stamps for his two children , etc .
They never garnished his wages . And far as I know he never paid them the back taxes, but he never filed a false return trying to claim he didn’t owe them.

 

Yes, once the IRS deems a debt to be uncollectible most times they will leave you alone. Still, it is not easy to live off the grid. This is what you have to do. I don't put much stock in I will quit my job first when it comes to IRS garnishment. Going on the public dole is not as easy as it once was. You can't get SNAP as an able-bodied adult and not have a job requirement. In some places, (insert name of children services here) will TAKE the children! Living off the grid means exactly that!

 

They can garnish your SS too.

sorry to derail the OPs thread… course we do that here frequently.
In almost every case, a W2 is better than 1099 unless you are really an independent contractor.

 

I get the false return, it is tax evasion and know people who did 6 and 12 months for it, but perjury?

That only comes from lying under oath (court room, disposition, witness/suspect statement, ect. …), and an audit isn’t done under oath nor is a commercial tax investigation unless they see serious abuse which goes back to suspect statement.


Just to add this, some of these 1099 carriers better worry a lot, the Biden administration has asked for and I think has gotten a huge amount of money for tax auditing and collection, they reversed both Obama and Trumps policy of having a better easier irs into the tyrannical agency it was in the 50’s through the 90’s.

 

That’s not an official or legal IRS position.

I’ve had several irs audits and never was told that and I run a proper 1099/contractor company. Every audit has been through and every time the issue of how the drivers are paid has met their (IRS) standards. The last one was triggered by a driver who thought he should be a w2 employee (he was offered one in another of my companies but refused because it wasn’t the work he liked) so they came in, asked a bunch of questions on how things ran, saw the operation first hand, got the drivers history, saw the offer letter we gave him then they closed the complaint.

 

Walmart pays their drivers w2 and well. I would say the same as the other drivers, stay where you are. The small company is offering you more because they are avoiding paying a number of taxes that will hit you when you go to file and owe 15,000 if you grossed well.

 

Where did you hear that?