CORRECTING ERRONEOUS IRS FORM 1099's
Form #04.005

TABLE OF CONTENTS:
  1. Why must correct Erroneous Reports?
  2. Correction Procedure
  3. How the Information Return Correction Process Works
  4. Where to File Corrected Information Returns
  5. Examples
  6. Frequently Asked Questions
  7. Saving and Reusing Completed Forms
  8. Stopping the false 1099 reports from being filed in the first place
  9. Keeping Records of all Information Returns
  10. Other alternatives to the IRS form 1099: The IRS form 4852
  11. Further Reading and Research

1.  Why Must Correct Erroneous Reports?

The only parties who can use this website are "nonresidents" but not "aliens" or "taxpayers", who are not engaged in the "trade or business" franchise, and who use the following forms to control their withholding in the priority presented, where the highest priority is the lowest number:

  1. PDF Affidavit of Citizenship, Domicile, and Tax Status, Form #02.001
  2. AMENDED IRS form W-8BEN, Form #04.202
  3. STANDARD IRS form W-8BEN with the following attached:
    PDF Tax Form Attachment, Form #04.201

IRS Publication 515, entitled "Withholding of Tax on Nonresident Aliens and Foreign Corporations", year 2000, says the following on page 3:

"Foreign persons who provide Form W–8BEN, Form W–8ECI, or Form W–8EXP (or applicable documentary evidence) are exempt from backup withholding and Form 1099 reporting."
[IRS Publication 515, year 2000, p. 3]

Here is another example off the IRS website, that shows that nonresident aliens not engaged in a "trade or business" (which is defined in 26 U.S.C. 7701(a)(26) as "the functions of a public office" in the United States government) are exempt from 1099 reporting:

What is the difference between a Form W-2 and a Form 1099-MISC? A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee.
[SOURCE:  IRS Website, http://www.irs.gov/faqs/faq12.html]

The term "trade or business" is legally defined as follows:

26 U.S.C. Sec. 7701

"The term 'trade or business' includes the performance of the functions of a public office."

"public office" as used above is then legally defined as follows:

Public office

“Essential characteristics of a ‘public office’ are:

(1) Authority conferred by law,

(2) Fixed tenure of office, and

(3) Power to exercise some of the sovereign functions of government.

(4) Key element of such test is that “officer is carrying out a sovereign function’.

(5) Essential elements to establish public position as ‘public office’ are:

    (a)    Position must be created by Constitution, legislature, or through authority   conferred by legislature.

    (b)    Portion of sovereign power of government must be delegated to position,

    (c)    Duties and powers must be defined, directly or implied, by legislature or through legislative authority.

    (d)    Duties must be performed independently without control of superior power other than law, and

    (e)    Position must have some permanency.”

[Black’s Law Dictionary, Sixth Edition, p. 1230]

Nowhere in the entire I.R.C. is the above definition of "trade or business" expanded to include any activity other than a "public office", which is defined above, and therefore it is all-inclusive and limited to "public offices".  This is also confirmed by the rules of statutory construction, which say on this subject:

Expressio unius est exclusio alterius.  A maxim of statutory interpretation meaning that the expression of one thing is the exclusion of another.  Burgin v. Forbes, 293 Ky. 456, 169 S.W.2d 321, 325; Newblock v. Bowles, 170 Okl. 487, 40 P.2d 1097, 1100.  Mention of one thing implies exclusion of another.  When certain persons or things are specified in a law, contract, or will, an intention to exclude all others from its operation may be inferred.  Under this maxim, if statute specifies one exception to a general rule or assumes to specify the effects of a certain provision, other exceptions or effects are excluded.”

[Black’s Law Dictionary, Sixth Edition, page 581]

"When a statute includes an explicit definition, we must follow that definition, even if it varies from that term's ordinary meaning. Meese v. Keene, 481 U.S. 465, 484-485 (1987) ("It is axiomatic that the statutory definition of the term excludes unstated meanings of that term"); Colautti v. Franklin, 439 U.S. at 392-393, n. 10 ("As a rule, `a definition which declares what a term "means" . . . excludes any meaning that is not stated'"); Western Union Telegraph Co. v. Lenroot, 323 U.S. 490, 502 (1945); Fox v. Standard Oil Co. of N.J., 294 U.S. 87, 95-96 (1935) (Cardozo, J.); see also 2A N. Singer, Sutherland on Statutes and Statutory Construction 47.07, p. 152, and n. 10 (5th ed. 1992) (collecting cases). That is to say, the statute, read "as a whole," post at 998 [530 U.S. 943] (THOMAS, J., dissenting), leads the reader to a definition. That definition does not include the Attorney General's restriction -- "the child up to the head." Its words, "substantial portion," indicate the contrary." 
[Stenberg v. Carhart, 530 U.S. 914 (2000)]

The requirement for Information Returns, including the IRS form 1099, originates from Internal Revenue Code section 6041, which says under paragraph (a) that all payments of over $600 that are made in connection with a "trade or business" must have Information Returns filed on them.  To wit:

TITLE 26 > Subtitle F > CHAPTER 61 > Subchapter A > PART III > Subpart B > 6041

6041. Information at source

(a) Payments of $600 or more

All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments to which section 6042 (a)(1), 6044 (a)(1), 6047 (e), 6049 (a), or 6050N (a) applies, and other than payments with respect to which a statement is required under the authority of section 6042 (a)(2), 6044 (a)(2), or 6045), of $600 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment.

It is quite common for financial institutions and private companies to misapply the state and federal revenue "codes", and especially the provision above.  Notice we didn't says "laws" (OFFSITE LINK), because the Internal Revenue Code (OFFSITE LINK) Subtitle A, not being enacted into positive law (OFFSITE LINK) , can only be "private law" that attaches to the individual through PDF explicit consent.  Instead, it is only "a decree under legislative forms" [tyranny, in fact] as the Supreme Court describes it below.  Neither does the Internal Revenue Code Subtitle A describe a lawful "tax" (OFFSITE LINK) in most cases either, except where the individual has given consent by choosing to involve in excise taxable activity called a "trade or business".  Instead, it is a "bible" that describes a state-sponsored religion, not a public law:

"To lay, with one hand, the power of the government on the property of the citizen, and with the other to bestow it upon favored individuals to aid private enterprises and build up private fortunes, is none the less a robbery because it is done under the forms of law and is called taxation.  This is not legislation [law].  It is a decree under legislative forms.

Nor is it taxation.  ‘A tax,’ says Webster’s Dictionary, ‘is a rate or sum of money assessed on the person or property of a citizen by government for the use of the nation or State.’  ‘Taxes are burdens or charges imposed by the Legislature upon persons or property to raise money for public purposes.’  Cooley, Const. Lim., 479.
"
[PDF Loan Association v. Topeka, 20 Wall. 655 (1874) (OFFSITE LINK)]

If you would like to learn more about why the Internal Revenue Code is not "public law" but "private law", and why it is also a state-sponsored federal religion, see:

  1. PDF Requirement for Consent, Form #05.003-memorandum of law by SEDM
  2. The free Great IRS Hoax, Form #11.302 (OFFSITE LINK) book, sections 5.4.6 through 5.4.6.6 entitled "The Internal Revenue Code is not Public or Positive Law, but private law".
  3. PDF Socialism: The New American Civil Religion, Form #05.016 -memorandum of law by SEDM

Violation of the revenue codes by financial institutions and private companies happens mainly because the IRS has illegally harassed, terrorized, and threatened them usually verbally when they insist on following the revenue statutes exactly as written or when they insist that such statutes have no jurisdiction over them.  In effect, the IRS and state revenue agencies and a colluding and compromised federal judiciary (OFFSITE LINK)  (see also Chapter 6, sections 6.9 through 6.9.12 of the free Great IRS Hoax, Form #11.302 (OFFSITE LINK) book, which proves they are compromised) have made it risky and very confrontational to follow the revenue statutes exactly as written and have done so completely without any lawful or delegated authority to do so.  This has been done mainly using what is called "judge-made law" (OFFSITE LINK) , and Congress has looked the other way on this scandal because they want it to happen and it benefits them hugely, to the tune of over a Trillion extorted dollars a year, to let it continue.  As a consequence, these institutions attempt to transfer the inherent risks to their workers so that they don't have to deal with them and can focus on the more important aspects of maintaining their businesses and their profitability.  The most important result of this abuse and illegal extortion directed at these institutions by the IRS is the misreporting of earnings on financial accounts reported on 1099 forms and earnings from labor reported on the W-2 form.  These types of filings are called "Information Returns" by the IRS.  If you do not take the responsibility to promptly correct these erroneous Information Returns with the IRS and state taxing authorities, then these agencies will automatically make the following usually false and completely illegal presumptions, and in the process, violate your due process rights (OFFSITE LINK) under the Constitution:

  1. That you have income "effectively connected with a trade or business" (OFFSITE LINK) , which is defined in 26 U.S.C. 7701(a)(26) (OFFSITE LINK) as "the functions of a public office" in the United States government.  The 1099 form instructions, in fact, say that the form is ONLY for use in connection with a "trade or business".  Here is what they say:

    IRS Form 1099-MISC Instructions, 2005, p. 1

    "Trade or business reporting only.  Report on Form 1099-MISC only when payments are mad in the course of your trade or business.  Personal payments are not reportable.  You are engaged in a trade or business if you operate for gain or profit.  However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements.  Nonprofit organizations subject to these reporting requirements include trusts of qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), and farmers' cooperatives that are exempt from tax under section 521.  Payments by federal, state, or local government agencies are also reportable."
    [SOURCE: http://famguardian.org/TaxFreedom/Forms/IRS/IRSForm1099Inst.pdf (OFFSITE LINK)]


    IRS Publication 583 entitled Starting a Business and Keeping Records, Rev. May 2002, p. 8

    "Form 1099-MISC.  Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. These payments include the following..."
    [SOURCE: http://famguardian.org/TaxFreedom/Forms/IRS/IRSPub583.pdf (OFFSITE LINK) ]

  2. That you have a Social Security Number, which means you are a federal "employee" and also are exercising agency of a federal entity that has a domicile in the District of Columbia.  Therefore, in the context of anything in which the number is used, you are presumed to be representing a federal corporation called the "United States" which has a domicile in the District of Columbia, which becomes your domicile as well pursuant to Fed.Rul.Civ.Proc. 17(b).  See 20 CFR 422.104, which describes who may be issued a Social Security Number.  This regulation is under CFR Title 20, which is entitled "Employee benefits", and the only type of "employee" they can legislate for are federal employees.  PDF Click here for more details.
  3. That because there is an identifying number on the 1099, that you consented for it to be treated as a "Taxpayer Identification Number" (OFFSITE LINK) .  The only kind of number the IRS is authorized to use by law are Taxpayer Identification Numbers, and the Treasury Department readily admits in its regulations at 26 CFR 301.6109-1(d)(3) that a Social Security Number is NOT a "Taxpayer Identification Number" (OFFSITE LINK).
  4. That because you consented to have a "Taxpayer Identification Number" (OFFSITE LINK), that you must be a "Taxpayer" (OFFSITE LINK)
  5. That because you supplied any kind of identifying number, you must be a "U.S. person" (OFFSITE LINK) .  26 CFR 301.6109-1 says that only "U.S. persons" can be required to provide identifying numbers.  A "U.S. person" is defined in 26 U.S.C. 7701(a)(30) (OFFSITE LINK) as either a "citizen" (a person born anywhere in the country and domiciled in the District of Columbia or a federal territory) or a "resident" (an "alien" domiciled in the District of Columbia or a federal territory).
  6. That because the earnings were reported on a federal form, then you must reside on federal territory and within federal jurisdiction, because you wouldn't fill out the form to begin with if you weren't subject to federal jurisdiction.  The fact that you didn't rebut false information returns filed against you is evidence that you agree they are TRUE.

If you do not rebut the above false government presumptions which you encouraged on government forms you signed under penalty of perjury, then your rights will be prejudiced and the government will mercilessly harass you, even if you never explicitly consented, to collect what they think are lawful "taxes" on these earnings, even though such earnings were earned entirely outside of their jurisdiction and do not satisfy the definition of "gross income"  (OFFSITE LINK) under the Internal Revenue Code.  PDF  Click here for details on why your silence equates with consent.  This article will show you how to prepare a corrected IRS form 1099 so that you can effectively zero out these false and unauthorized reports of taxable "gross income",  (OFFSITE LINK) and negate all the above false government presumptions that you do not consent to.  If you do not rebut them, then you will be presumed to agree with them by default.  After they have been rebutted, the government will be left with no legally admissible or reliable evidence upon which to base any kind of assessment.  Without the power of assessment, there is nothing to collect.  Without the ability to collect, the law requires that they must LEAVE YOU ALONE.

The U.S. Government Accounting Office (GAO) has published some interesting reports that show that even federal agencies have been completing their Information Returns (IR) improperly and explaining why the returns are incorrect.  Below is a sampling, and you can look at more by clicking here  (OFFSITE LINK) :

2.  Correction Procedure

Whenever we complete government forms, the first thing to remember is that even the Standard government forms usually contain false presumptions or statements that will prejudice one's rights and which typically would slip by unnoticed by the general public.  This is especially true of the "words of art"  (OFFSITE LINK) used on the form and the perjury statement at the end of the government form.  Therefore, it is usually unwise to use the government's Standard forms, and to instead use a modified or what we call an "Amended" form.  Amended forms are the only kinds of forms we recommend and the Family Guardian Website  (OFFSITE LINK) contains a catalog of both the original government forms and the Amended versions below:

http://famguardian.org/TaxFreedom/Forms/IRS/IRSFormsPubs.htm (OFFSITE LINK)

Whenever possible, you must use the Amended forms or else you will suffer having your rights unjustly prejudiced by the government.  All of the SEDM response letters which include government forms as exhibits or attachments include blank Amended, and not Standard, government forms, and you should not substitute the Standard government form unless compelled to do so.  Click here to see a list of the changes  made to the Standard forms to make them into the Amended forms if you are curious. To give you one glaring example of a TRAP that greedy state lawyers set which should be avoided at all costs, take a look at the Oregon "Employees Substitute Wage and Tax Statement" form.  Notice it has "Taxpayer's Signature" at the end and "Employee" at the top.  There is no way to fill out this form and send it in without creating TWO false presumptions:  1.  That you are an "employee" under the I.R.C.; 2.  That you are a "taxpayer".  The state of Oregon DOES NOT have a substitute form suitable to be submitted by those who claim to be neither "taxpayers" nor "employees" and who want to zero out false reports by their private employers, who coerced them into participating because they quite frankly do not want people exiting the fraudulent tax system.  WATCH OUT!   

PDF Oregon "Employees Substitute Wage and Tax Statement", form 206-005

All the above preliminaries now aside, we can get to work showing you how to fill out the IRS 1099 to attach to your IRS or state response letter.  First, let's review what the instructions for form 1099 say themselves about correcting an erroneous 1099 report, from page GEN-12 of the 2004 "General Instructions for Forms 1099, 1098, 5498, and W-2G":

1.  Prepare a new information return.

2.  Enter an "X" in the "CORRECTED" box (and date (optional)) at the top of the form.

3.  Correct any recipient information such as money amounts and address.  Report other information per original return.

Below is a link to both the Standard and Amended IRS form 1099, so you can compare and see the differences for yourself.  The Amended forms are "fillable" with the free Adobe Acrobat Reader.  They have been preinitialized with the most common values to save you time.

Form Standard IRS form
(Avoid!)
Amended version
1099-MISC Click here 1099-MISC Amended
1099-CC (Custom form)
1099-DIV Click here 1099-DIV Amended
1099-CC (Custom form)
1099 Instructions Click here NA

WARNING:!  Do NOT attempt to contact us to ask us to prepare other fillable 1099 variants such as the 1099-S or 1099-INT that do not appear in the above table or on this page.  We don't have time to do this and certainly not without compensation.  If you want to make your own versions of these forms you may create them as we have using the following product.  After you have made other variants of the 1099 form, please send the new form you create to us so that we can post it for others to reuse.

Nitro PDF Editor

Remember the following requirements for the IRS Form 1099:

  1. If you wish to avoid all the pitfalls with using standard IRS forms, then we highly recommend the 1099-CC Form, Form #04.309 indicated in the Amended column above.  This custom form is the ONLY information correction method we know of that can be filed by a nonresident no-individual non-taxpayer, and which also doubles as a criminal complaint against the original filer.  This is useful in filling your record with exculpatory evidence to prevent any kind of criminal prosecution by recipients of the correction form who don't read the law.
  2. One corrected 1099 form must be filled out for EACH Form 1099  (OFFSITE LINK) that was wrongfully filed on you, and must include all the information about the original organization that made the report.  If you don't have the original forms that hopefully were mailed to you by your business associate, then you can request replacement copies from the associate or from the IRS.
  3. Enter the identification numbers for the PAYER and RECIPIENT and after "RECIPIENT identification number" write "NONTAXPAYER". 
  4. Do NOT attach or send in the original Form 1099  (OFFSITE LINK) that your financial institution or PRIVATE employer gave you, because they are wrong and will just confuse the IRS or state revenue agency.  Give them ONLY the substitute form and make it hard for them to even see the false information on the original reports.
  5. The 1099-MISC is filled out with all the same information as what was on the original 1099-MISC , including "taxes" paid, but with Income earned set to zero.  Therefore blocks 4, 6, and 16, the tax withheld, should reflect whatever was wrongfully reported by your business associate, while blocks 1 through 3, 5 through 14, 15a, and 15b will be zero.  The reason that income blocks should be zero is because the only nonzero amounts in these blocks are those connected with a "trade or business", meaning a public office in connection with the United States government as defined under 26 U.S.C. 7701(a)(26).  Since you probably don't hold public office, then you shouldn't be reporting earnings in connection with it.

    WARNING!:  If you do not have any earnings in connection with a "trade or business" (OFFSITE LINK) , you also cannot be taking any deductions (26 U.S.C. 162), earned income credit (26 U.S.C. 32), or apply a graduated rate of tax (26 U.S.C. 1) if you file a return.  All such "privileges" will make you into a person engaged in a "trade or business".  The rate on all "gross income" for those with no earnings connected with a "trade or business" is a flat 30% for Nonresident aliens, as indicated under 26 U.S.C. 871(a).  This is normally not a big deal, because the only type of gross income that is not specifically identified as connected with a "trade or business" is Social Security under 26 U.S.C. 861(a)(8).  Click here (OFFSITE LINK) for details.

  6. The 1099-DIV is filled out with all the same information as what was on the original 1099-DIV, except that the earnings in blocks 1a through 9 are set to ZERO. The reason that earnings blocks should be zero is because the only nonzero amounts in these blocks are those connected with a "trade or business", meaning a public office in connection with the United States government as defined under 26 U.S.C. 7701(a)(26).  Since you probably don't hold public office, then you shouldn't be reporting earnings in connection with it.

    WARNING!:  If you do not have any earnings in connection with a "trade or business" (OFFSITE LINK) , you also cannot be taking any deductions (26 U.S.C. 162), earned income credit (26 U.S.C. 32), or apply a graduated rate of tax (26 U.S.C. 1) if you file a return.  All such "privileges" will make you into a person engaged in a "trade or business".  The rate on all "gross income" for those with no earnings connected with a "trade or business" is a flat 30% for Nonresident aliens, as indicated under 26 U.S.C. 871(a).  This is normally not a big deal, because the only type of gross income that is not specifically identified as connected with a "trade or business" is Social Security under 26 U.S.C. 861(a)(8).  Click here (OFFSITE LINK) for details.

  7. If you provided a TIN for the original 1099 form, then you should attach a note indicating that you are not a statutory "taxpayer", "resident", "alien", or "U.S. person", but instead are a "nonresident alien NON-individual" not  not engaged in a "trade or business" as defined in 26 U.S.C. 7701(b)(1)(B) who has no "SSN", "TIN", or "ITIN". Our PDF Corrected Information Return Attachment Letter, Form #04.002, does this with Enclosure (8), PDF Tax Form Attachment, Section 3.  That form also makes any original information return reports FALSE and FRAUDULENT.
  8. If you don't have the original erroneous 1099 reports, then you won't have anything you can start with to transfer numbers onto the 1099.  In that case, fill out one form for each tax year and each institution or employer, and put as much information as you have about the institution on the form, and indicate under items 7(A)(a) through 7(A)(e) and 7(B)(1) through 7(B)(3) the amount "zero".
  9. You may wish to attach a note of explanation to the corrected IRS form 1099.  This explanation should state something like the following.  PDF Click here for a sample attachment of that listed below:

The reason this corrected form is being provided is because:

1.  The person about whom the original false 1099 was filed is a "nonresident alien", domiciled outside of the "United States" and who has no earnings connected with a "trade or business" in the United States.

2.  Only earnings connected with a "trade or business" are reportable on a 1099.  The IRS 1099-MISC instructions say this:

"Trade or business reporting only.  Report on Form 1099-MISC only when payments are mad in the course of your trade or business.  Personal payments are not reportable.  You are engaged in a trade or business if you operate for gain or profit.  However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements.  Nonprofit organizations subject to these reporting requirements include trusts of qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), and farmers' cooperatives that are exempt from tax under section 521.  Payments by federal, state, or local government agencies are also reportable."
[SOURCE: http://famguardian.org/TaxFreedom/Forms/IRS/IRSForm1099Inst.pdf (OFFSITE LINK)]

3.  The organization issuing the original 1099 is also a "nonresident alien" domiciled outside of the "United States", but through either fraud or mistake or through duress or false statement on the part of the IRS, refuses to acknowledge that fact or rebut the overwhelming evidence that they are simply WRONG.  The organization has also refused to honor my wishes by not submitting the form 1099 after being explicitly told that I am not engaged in a "trade or business". This has prejudiced my rights and created false presumptions on the part of the recipients of this form which I insist on correcting so as to protect my Constitutional rights.

If you disagree, please rebut the overwhelming evidence below and answer the admissions at the end within ten days.  Any admissions you do not address shall be admitted and a failure to timely respond within that time period shall constitute a "nihil dicit" judgment and a default on the part of the recipient of this submission per Federal Rule of Civil Procedure 8(b)(6).

The "Trade or Business" Scam, Form #05.001; http://sedm.org/Forms/MemLaw/TradeOrBusScam.pdf . (OFFSITE LINK)

We have prepared a sample letter in Microsoft Word format that you can use to attach to your 1099-CC (custom form) or Amended IRS form 1099 that explains all the details of why you are seeking the correction and the authority for requesting the correction.  Feel free to modify the form, but please don't do so unless you have REALLY done your homework, because you are likely to create more problems for yourself than you solve in the process, mostly because of ignorance.  Click on the links below:

Some states have their own substitutes for the IRS form 1099.  These substitutes must be used when you are filing state income taxes, but accomplish the same affect as the IRS form 1099.  If your state does not have a 1099 substitute form and you are corresponding with a state revenue agency, then its best to provide either a corrected form W-2 or 1099, or to use the IRS form 1099 to correct erroneous reports of gross income.  The decision is yours.  If you would like more information about the tax laws of a specific state, see the link below:

3.  How the Information Return Correction process works

W-2's and 1099s are called "Information Returns" by the IRS.  Below is the overall process for correcting erroneous or false W-2's or 1099's so you know exactly how it works and what to expect:

  1. If you haven't archived or kept all the inforamtion returns filed against your name, obtain copies of the corrected information returns received by the IRS using one of the following:
    1.1  PDF Information Return FOIA: "Trade or Business", Form #03.023
    1.2  PDF IMF Decoding Freedom of Information Act Request, Form #03.015, FOIA #3. 
    1.3  Write your own request using information contained in our PDF Correcting Erroneous Information Returns, Form #04.001, Section 6.
  2. Complete corrected Information Returns:

    2.1  Complete Amended form 4852's for all years false W-2 reports were made against you.

    2.2  Complete Amended/Corrected form 1099's for all false 1099 forms filed against you.  See our article below for information on how to do this:
          http://sedm.org/Forms/FormIndex.htm

  3. Find the Data Processing Center address to mail the completed information return from the form instructions:   Examine the IRS Instructions for the information return form you prepared above.  The instructions provide the address of the Data Processing Center to mail the completed information returns.  Write down this address from the form instructions.  Alternatively, you can look in the next section, which summarizes the Data Processing Center addresses for the various information returns.  Each information return form has a different Data Processing Center so make sure you get the right one.
  4. Mail one set of completed forms above to EACH of the following TWO separate destinations:

    4.1.      To the Data Processing Center address in the previous step.

    4.2.      To the IRS Service Center where you would normally file returns WITH THE FOLLOWING COVER LETTER
               For nonresident aliens, this would be the International processing center, which was at the following address last we checked:
               Internal Revenue Service; P.O. Box 80102; Cincinnati, OH 45280-0002.

    Corrected Information Return Attachment Letter, Form #04.002

    http://sedm.org/Forms/FormIndex.htm

  5. When the Data Processing Center or IRS receives the corrected information returns, they will correct the entries in the Information Return Master File (IRMF).  IRS will also send out an IRS Form 4598 to the employer or financial institution that originally sent in the erroneous W-2 or 1099 asking them to provide an updated form or to explain why their form was incorrect.  If they are following the directions in our cover letter, they will use the Amended IRS form 4598 to send to the employer, and not the standard form so as to remove presumptions and offer additional explanation options to the employer or financial institution.  The employer or financial institution has 10 days to fill out and return the IRS Form 4598.  They may also respond by sending the IRS a W-2c or W-3c form, which corrects the erroneous reports they provided and which hopefully will agree with your 4852 submission.
  6. The IRS may then further change the entries for the returns in question based on the IRS Form 4598 the employer or financial institution completed and returned to the IRS.
  7. If the IRS is unable to reconcile the employer or financial institution's response with what you said in your cover letter, then they may amend the IDRS based on their own determination.

If you would like more information about Information Returns processing, visit the IRS website at:

http://www.irs.gov/taxpros/content/0,,id=98185,00.html

4.  Where to File Corrected Information Returns

The table below lists where corrected information returns must be filed as of 2008:

Table  1: Place to file corrected information returns

Forms

IRS Publication containing address

Applicable Region

Place to file

1042-S

Instructions for Form 1042-T, Catalog Number 28848W

All

Internal Revenue Service

Ogden Service Center

P.O. Box 409101

Ogden, UT  84409

1098, 1099, 5498, W-2G

1099 General Instructions (PDF) Instructions for Forms 1099, 1098, 5498, and W-2G, Catalog #27976F, Sections C and D

Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, West Virginia

Department of the Treasury

Internal Revenue Service

Austin, TX  73301

Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming

Department of the Treasury

Internal Revenue Service

Kansas City, MO  65999

W-2 and W-3

Instructions for Forms W-2 and W-3, Catalog Number 25979S

All

Social Security Administration

Data Operations Center

Wilkes-Barre, PA 18769-0001

5.  Examples

Below are some example documents to help show you how to fill out the 1099 and 1099:

IRS Form sent in by institution Example completed
original form
Example Amended
1099 replacement
PDF Form 1099-MISC PDF 1099-MISC example PDF 1099 Replacement for 1099-MISC
PDF Form 1099-DIV PDF 1099-DIV example PDF 1099 Replacement for 1099-DIV

Below is the Attachment that was used for the above replacement form 1099 provided for your reuse:

6.  Frequently Asked Questions

Q1:  What if I don't have the original 1099 forms that I want to zero out that I can take the original information from to put on the 1099?

A1:  You can call the provider and ask them to fax you the 1099 information again.  Alternatively, you can file a 1099 that simply says "All sources" under item 5 on the 1099 form.

____________

Q2:  Is it ever too late to submit these forms for past years?

A2:  No.  There is never a wrong time to do the right thing.  As long as the government has records of receipt of "gross income", then it is our duty to rebut the wrong evidence, no matter how old it is, because sooner or later, they will use it to come back to us and demand that we either file or pay.

____________

Q3:  Should I fill out the 1099 for past years, or only for the years they are going after me for?

A3:  It's always safest to file 1099 forms for all years that a person didn't file a return.  This is a preventive measure if they decide later on to go after a person later for those years.

7.  Saving and reusing completed forms

The form 1099 is frequently used when corresponding with the IRS and state taxing authorities as a way to remind the government that a person has no taxable income. Once you have completed the form for a particular tax year, it is best to keep the original in a safe place and reuse it by photocopying it and attaching it to correspondence.  This will save you lots of work and time.  We scan in ours and make it into an Adobe Acrobat PDF and just reprint it whenever we need it.

8.  Stopping the false 1099 Reports from being filed in the first place

The Corrected IRS Form 1099 is for use primarily in undoing the damage done by private employers and companies, who usually because of their ignorance of the law, either complete Information Returns such as the Form 1099 when they don't need to, or who put false information on these returns.  If you would like to prevent this problem of false returns being filed unlawfully in the future, then we suggest the following options:

  1. Submitting the following form to the filer of the false form and demanding that they prove with evidence that you are engaged in a "trade or business".  Do so with a Certificate of Service and have it notarized.  Send via certified mail or personally by a neutral third party.  This will provide formal notice and legal evidence that they have been notified.  If they do not rebut the information, you have readily admissible evidence that their conduct beyond that point becomes legally actionable and FRAUDULENT.
    Demand for Verified Evidence of "trade or business" Activity: Information Return, Form #04.007
    http://sedm.org/Forms/Tax/CorrErrInfoRtns/DmdVerEvOfTradeOrBusiness-IR.pdf
  2. If the financial institution or private employer insists that you contact the legal department of the company to resolve your dispute about fraudulent filing of information returns and unlawful withholding, we suggest sending the following very powerful letter directly to the employer or financial institution legal office according to the instructions:

    Legal Notice to Correct Fraudulent Tax Status, Reporting, and Withholding, Form #04.401

    http://sedm.org/Forms/FormIndex.htm

  3. If the legal department doesn’t correct the illegal, harmful, and fraudulent reporting and withholding of the company based on the above letter, you may consider suing the payroll, withholding, or reporting person individually and by name.  We are working on a canned lawsuit suitable for this purpose which will be referenced in this document when available.
  4. After they have been confronted about the false information returns, if they persist and insist on continuing to violate the law, you can write the IRS to ask them to correct the false information return and also financially and civilly penalize the employer for submitting false information pursuant to 26 U.S.C. 6702.  Starting in January 2007, the IRS posted a notice warning those who submit false 4852's that they could be civilly penalized for submitting a false return.  This penalty applies just as readily to the submitters of the original false information return as it does to those who are submitting the corrections.  PDF Click here to view the current version of the form that shows the penalty language.  You can cite the language on the form as your authority for demanding that the submitter of the false returns be penalized.

    4.1  You should also do follow-up to ensure that this penalty is instituted.  Once their violations of law begin affecting their bottom line, usually the submitters of the false returns will reform their ways.

    4.2  If the IRS refused to EQUALLY enforce the law, inform them that a criminal complaint will be filed against the IRS Commissioner for the following:

    4.2.1  18 U.S.C. 3: Accessory after the fact.  The IRS, by refusing to remedy the situation, becomes an accessory after the fact to fraud and false statement by the submitter of the false information returns.

    4.2.2  18 U.S.C. 912: Falsely impersonating an officer [PUBLIC OFFICER] or employee of the United States.  The IRS is causing you to be misrepresented as a "public official".  The tax in Subtitle A of the I.R.C. is a tax upon a "trade or business", which is defined as "the functions of a public office" in 26 U.S.C. 7701(a)(26).  By allowing their records to falsely reflect the fact that you are a "public official", they are causing you to involuntarily and falsely impersonate an officer of the United States government.

    4.2.3  18 U.S.C. 1030: Fraud and related activity in connection with computers.  The IRS is deliberately and willfully falsifying the records that describe your status and they should be prosecuted.

    4.2.4  26 U.S.C. 7207: Fraudulent Returns, Statements, or other documents.  The IRS is facilitating the submission and processing of knowingly false information returns, such as IRS forms W-2, 1042S, 1098, and 1099.

  5. If the IRS does not take responsibility to civilly penalize the submitter of the false information returns pursuant to 26 U.S.C. 6702, next you can file a criminal complaint against them with the Department of Justice of the United States pursuant to 28 U.S.C. 2679.  Charge as follows:

    5.1  Charge the submitter of the information return and the withholding agent with the following

    5.1.1  26 U.S.C. 7207: Fraudulent Returns, Statements, or other documents

    5.1.2  18 U.S.C. 912: Falsely impersonating an officer [PUBLIC OFFICER] or employee of the United States

    5.1.3  18 U.S.C. 1589: Forced Labor.  The private employer, by inducting you illegally into the tax system, is causing you to engage in forced labor for the portion of your compensation that he illegally diverts to the government.   18 U.S.C. 1593 mandates restitution for the slavery be paid to you by the submitter of the fraudulent information return.

    5.2  Charge the IRS with the following:

    5.2.1  18 U.S.C. 3:  Misprision of felony.  The IRS is cooperating with the crimes of the information return submitter and withholding agent.

    5.2.2  18 U.S.C. 241: Deprivation of Rights.  The IRS is causing you to involuntarily forfeit your rights to the fruits of your labor and the compensation from it, by refusing to take action on your petition for redress.

    5.2.3  18 U.S.C. 1002: Possession of false papers to defraud the United States.  The fraudulent information returns received from the submitter are used in crediting Social Security Earnings, which in turn become a basis for collecting Social Security benefits.  If these reports are wrong, then the person who is the subject of the report is entitled to increased Social Security earnings, which in turn can be used to defraud the United States out of monies that they in fact are not legally entitled to.  No one domiciled in a state of the Union on other than federal territory can lawfully participate in or collect benefits from Social Security.  See
    Resignation of Compelled Social Security Trustee, Form #06.002
    http://sedm.org/Forms/AvoidingFranch/SSTrustIndenture.pdf

    5.2.4  18 U.S.C. 1028A: Aggravated Identity Theft.  The IRS, by using a Social Security Number as a Taxpayer Identification Number, and by falsely associating you with the status of a "public employee", is stealing your identity and transporting it unlawfully to the District of Columbia pursuant to 26 U.S.C. 7701(a)(39) and 26 U.S.C. 7408(d).

    5.2.5  18 U.S.C. 1583: Enticement into Slavery.  The IRS, through the omission of failing to correct the false information return reports or in LYING to you by telling you that they are required, is inducting you illegally into the tax system, is causing you to engage involuntarily in slavery for the portion of your compensation that he illegally diverts to the government.

    5.2.6  18 U.S.C. 1589: Forced Labor.  The IRS, by refusing to correct the fraud of the information return submitter, is inducting you illegally into the tax system, is causing you to engage in forced labor for the portion of your compensation that he illegally diverts to the government.  18 U.S.C. 1593 mandates restitution for the slavery be paid to you by the IRS.

    5.2.7  18 U.S.C. 1951: Interference with commerce by threats or violence.  If the IRS threatened to penalize, audit, or "selectively enforce" against you in retaliation for brining the illegal activity of the submitter of the fraudulent information return and withholding agent to their attention, then they are engaging in criminal racketeering.

    5.2.8  18 U.S.C. 1956: Laundering of monetary instruments.  If the submitter of the false information return also involuntarily withheld monies from your pay, the IRS, in receiving the proceeds of said extortion, is engaging in laundering of monetary instruments.

    5.2.9  18 U.S.C. 1030: Fraud and related activity in relation to computers.  The fraudulent information returns received from the submitter by the IRS are processed entirely by computer.  By allowing knowingly false information in their computer system, they are engaging in computer fraud.

    5.2.10  42 U.S.C. 1994: Peonage abolished.  The IRS, by its omission in correcting the fraudulent information returns, is recruiting you into peonage and making you into involuntary surety for debts of a foreign jurisdiction.

  6. If the DOJ does not prosecute the IRS employees engaging in the fraud because of their omission, file a criminal complaint with the Attorney General of your State against the commissioner of the IRS and the specific employees at the IRS who refused to correct the fraudulent information returns.  Use the following as a resource:

    6.1  State legal resources

    6.2  State income taxes

    6.3  28 U.S.C. 2679(c ):  Authorizes you to sue a federal employee in a state court if he is operating outside of his delegated or lawful authority.

    6.4  28 U.S.C. 1652: State laws as rules of decision.  States that state law prevails in cases where federal actors are operating outside their authority on land under exclusive state jurisdiction.

  7. Next, you can file a civil lawsuit as follows:

    7.1  26 U.S.C. 7434: Civil Damages for Fraudulent Filing of Information Returns.  To recover civil damages for false filing of information returns for $5,000 or more, including attorneys fees, against the submitter of the false information returns.

    7.2  31 U.S.C.  3729:  False Claims Act.  Use this statute and file in the name of the United States to recover false claims against the United States.  Since the U.S. Attorney declined to prosecute, then this statute allows you to file suit individually as an agent of the United States.

9.  Keeping records of all Information Returns

W-2 and 1099 reports are called "Information Returns" by the IRS.  The IRS and state revenue agencies make it very difficult for you to rebut the bogus W-2 and 1099 reports by:

Consequently, it is VERY IMPORTANT that you maintain an archive of all of the Information Returns filed on you, along with the rebuttal to each one in the form of either a 4852, an amended W-2, etc.  That way, when the IRS institutes collection activity, you can include rebutted versions of the Information Returns with your response, and you can reuse these rebuttals in all future correspondence with a minimum of effort.

For those of you who are trying to reconstruct a file of all of your Information Returns so you can prepare rebuttals and keep them on file for future use, the following options are available:

  1. You can contact the employers, financial institutions, and organizations that filed the Information Returns and ask them to send you replacements.
  2. The IRS website contains links describing how to get copies of these bogus reports below:

    Topic 154 - 2004 Forms W-2 and Form 1099–R (What to Do if Not Received) (OFFSITE LINK)

    Topic 159 - Prior Year(s) Form W-2 (How to Get a Copy of) (OFFSITE LINK)

10.  Other alternatives to the corrected IRS form 1099: The Form 4852

IRS makes one other form that serves the same purpose as the form 1099 but is more versatile, and this is the IRS Form 4852, which is called

"Substitute for Form W-2 and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.".

Note the SERIOUS limitations upon the IRS Form 4852:

  1. Note that this form can ONLY be used to rebut false Form W-2 and Form 1099-R.
  2. The form is ONLY for use in connection with forms 1040 and 1040X.  That means it is ONLY for resident aliens and cannot be used by nonresident aliens.  If you want a nonresident form, you have to make your own, such as the 1099-CC Form, Form #04.309 that we use.

If you need to rebut false 1099-MISC or any other type of 1099 OR if you are a nonresident alien, then you can't use this form.  We wrote a similar article about this form which you can view by clicking on the link below:

1099-CC Form, Form #04.309

11.  Further reading and research

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