Urgent help needed - TAX file question

[justcuriousaa]

Hi,

Here is my scenario. I work as a consultant on H1B visa.
I worked for a company ( company A) during 9 months of year 2006 and then left the company in Oct 2006.
The company did not run payroll for my entire salary. They ran payroll for a fixed amount and remaining they used to give me as perdiems every month for which I send them an excel sheet report of expenses.

Now, I got my w-2 and I filed my tax returns already.
Now they have sent me a form 1099-MISC which says an extra income of the 10K ( the amount which they used to pay me in perdiems) and no tax witheld for that.

Seems like since I have quit the company, they have reported the perdiem money as taxable income to IRS.

Now I am in a confused state as what to do... Any help is greatly appreciated as this is urgent since tax deadline is nearing.

I have following questions.

1. Is perdiem taxable? I saw somewhere in IRS site that perdiem is non-taxable if it is below the maximum allowed for that place. In that case can I argue that this money is non-taxable?
2. Should I file an amended return including this amount as taxable in which case I would need to pay a huge amount out of my pocket?
3. Or can I make it as non-taxable and file an amended return ( since perdiem is non-taxable)? If so how can I do that?
4. Or can I leave it as it is without filing another return? In that case how and when IRS wll find out. Will they find everyone whose income and return does not match or do they audit randomly?

Please clarify these questions.
Your help is greatly appreciated.

Also you can guide me to someone who can help in this regard.

Thanks
MA

 

[Chicago Desi]

You can ammend your tax return easily. IRS has published a form for this (I forgot the form number). I suggest you talk to a good tax consultant ASAP.

Hi,

Here is my scenario. I work as a consultant on H1B visa.
I worked for a company ( company A) during 9 months of year 2006 and then left the company in Oct 2006.
The company did not run payroll for my entire salary. They ran payroll for a fixed amount and remaining they used to give me as perdiems every month for which I send them an excel sheet report of expenses.

Now, I got my w-2 and I filed my tax returns already.
Now they have sent me a form 1099-MISC which says an extra income of the 10K ( the amount which they used to pay me in perdiems) and no tax witheld for that.

Seems like since I have quit the company, they have reported the perdiem money as taxable income to IRS.

Now I am in a confused state as what to do... Any help is greatly appreciated as this is urgent since tax deadline is nearing.

I have following questions.

1. Is perdiem taxable? I saw somewhere in IRS site that perdiem is non-taxable if it is below the maximum allowed for that place. In that case can I argue that this money is non-taxable?
2. Should I file an amended return including this amount as taxable in which case I would need to pay a huge amount out of my pocket?
3. Or can I make it as non-taxable and file an amended return ( since perdiem is non-taxable)? If so how can I do that?
4. Or can I leave it as it is without filing another return? In that case how and when IRS wll find out. Will they find everyone whose income and return does not match or do they audit randomly?

Please clarify these questions.
Your help is greatly appreciated.

Also you can guide me to someone who can help in this regard.

Thanks
MA

 

[great guru]

Send me a Pm I will help you on these issue.

Hi,

Here is my scenario. I work as a consultant on H1B visa.
I worked for a company ( company A) during 9 months of year 2006 and then left the company in Oct 2006.
The company did not run payroll for my entire salary. They ran payroll for a fixed amount and remaining they used to give me as perdiems every month for which I send them an excel sheet report of expenses.

Now, I got my w-2 and I filed my tax returns already.
Now they have sent me a form 1099-MISC which says an extra income of the 10K ( the amount which they used to pay me in perdiems) and no tax witheld for that.

Seems like since I have quit the company, they have reported the perdiem money as taxable income to IRS.

Now I am in a confused state as what to do... Any help is greatly appreciated as this is urgent since tax deadline is nearing.

I have following questions.

1. Is perdiem taxable? I saw somewhere in IRS site that perdiem is non-taxable if it is below the maximum allowed for that place. In that case can I argue that this money is non-taxable?
2. Should I file an amended return including this amount as taxable in which case I would need to pay a huge amount out of my pocket?
3. Or can I make it as non-taxable and file an amended return ( since perdiem is non-taxable)? If so how can I do that?
4. Or can I leave it as it is without filing another return? In that case how and when IRS wll find out. Will they find everyone whose income and return does not match or do they audit randomly?

Please clarify these questions.
Your help is greatly appreciated.

Also you can guide me to someone who can help in this regard.

Thanks
MA