Perspective | My husband’s identity was stolen. Then he got a bogus 1099.

Generally, if you’re an independent contractor, you’re considered self-employed. So instead of receiving a W-2, you might get a Form 1099-NEC (for non-employee compensation), which reports the income you earned during the year. The IRS compares what it receives on documents such as W-2s or 1099s with what people report on their federal income tax returns.

If there’s a discrepancy, you’re likely to receive a CP2000 letter from the IRS. It can be a frightening notice, because the agency might question whether you underreported your income and assess additional taxes and interest.

Handling a heart-stopping letter from the IRS

Liveops issued a 1099-NEC indicating that my husband had earned just over $10,000 in 2021. They had the correct home address and his Social Security number, but he had never heard of this company. More later on how the company responded.

Knowing that the 1099 was wrong, we didn’t include the income on our 2021 tax return. But we feared that next year or some years down the road, the IRS computer system would think that we underreported the earnings on our joint return, and that could lead to a nightmare of correspondence to get the matter cleared up.

I was the designated sleuth. What was Liveops?

An online search of just the company’s name found a colorful website that said: “The modern contact center. Virtual. Flexible. Efficient.”

Wondering whether anyone else had experienced the same issue of an incorrect 1099, I searched for “Liveops scam and 1099.” That led me to a page on the company’s website that said, “Avoiding Recruiting Scams — Work from Home — Join Liveops.” On this page was this notice: “If you have received a faulty 1099 from Liveops, please complete the form here and our team will connect with you.”

My husband filled out the form and shortly thereafter received an automated email.

“Thank you for notifying Liveops, as we take the issue of possible Identity Theft very serious,” the email said. “Part of the process of entering into a 1099 contract to provide services, is a background check, thus we are disappointed to learn that an individual is potentially providing services under false identification. Unfortunately, the responsibility of resolving this matter and safeguarding personal information falls on you as the victim.”

The lack of accountability displayed in that email had us hopping mad. There was no information on whom to contact to clear up the matter. No recognition that the company is obligated, by law, not only to issue the appropriate 1099s but to file correct ones. Once advised that a 1099 is wrong, the company needs to correct it, according to the IRS.

The instructions for statements such as the 1099-NEC clearly indicate not only that there should be a contact number but that it “must provide direct access to an individual who can answer questions about the statement.”

My husband called the number listed on the statement he received. It was maddening trying to navigate a maze of automated prompts, none of which led to a real person.

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The company listed several steps to report the identity theft: Contact the IRS, call the Social Security Administration, file a report with the Federal Trade Commission and check your credit reports.

We couldn’t get through to talk to anyone on the IRS identity theft line, at 800-908-4490, even after trying several times. Each time we were told that, because of an extremely high call volume, no one was available to help us.

The Social Security Administration referred us back to the IRS for issues relating to taxes, including someone using your Social Security number to work.

My husband filed a report with the FTC at IdentityTheft.gov.

He pulled all his credit reports, and none listed Liveops under the employer section. A check of his online IRS account showed no fake return, thank goodness.

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Back to the Internet: Another online search led to a Better Business Bureau page warning folks that the business name is being used by scammers. “Please be cautious in responding to employment offers from Liveops,” the BBB warned.

If you’ve received a 1099 from a company you don’t recognize, or have had other marketplace issues with a company, file a complaint at bbb.org.

“When people are not able to contact a company by themselves, BBB can help, and filing a complaint is a formal way of letting us do so,” said Sandra Guile, director of communications for the International Association of Better Business Bureaus.

Maybe our situation could help others, so, identifying myself as a journalist, I contacted Liveops for a comment.

A public relations representative for the company emailed the following statement: “It is important for alleged victims of identity theft to contact appropriate law enforcement to file a report and to contact the IRS to address any potential financial repercussions. When a victim of identity theft reaches out to Liveops about potential fraud, Liveops representatives do their best to assist and take all necessary steps legally required to correct any company reporting or filing.”

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Shortly after I made a press inquiry, my husband received a telephone call from a Liveops representative. Like so many people do these days who are inundated with scam calls, he didn’t answer the unknown number. The call went to voice mail.

An email from the company to me said they were trying to reach my husband. He checked his mobile phone and found the voice-mail message. A sympathetic representative assured him the matter would be investigated.

Here’s my advice: As daunting as it can be, don’t give up trying to get a faulty 1099 fixed. Do what you can to avoid getting a tax bill from the IRS for earnings you never received.