Tax Talk-Feb 2026
Worker Misclassification, Missing W-2s, and 1099 Problems — What You Need to Know
Recently, I have been hearing more frequent reports of employers misclassifying workers, employees not receiving their W-2 forms, and even situations where employers refuse to provide required year-end tax documents. I have also seen an increase in questionable or incorrect Form 1099 reporting. These situations can create confusion, stress, and potentially serious tax consequences for workers.
I want to reassure my clients—and anyone facing these issues—that solutions and remedies do exist. You do not have to simply accept improper classification or missing paperwork and suffer the financial consequences.
What is worker misclassification?
Misclassification occurs when a worker who legally meets the criteria of an employee is treated as an independent contractor and issued a Form 1099 instead of a Form W-2. Proper classification is not optional—it is determined by strict federal guidelines based on behavioral control, financial control, and the nature of the working relationship. Employers cannot simply choose whichever classification is more convenient.
Unfortunately, some businesses attempt to classify workers as independent contractors to avoid payroll taxes, unemployment taxes, workers’ compensation, and other employer obligations—while still exercising the same control they would over an employee. The IRS and Department of Labor take this matter very seriously, and enforcement activity has increased in recent years.
Common Warning Signs
- You are told when, where, and how to work like a regular employee
- Taxes are not withheld from your pay
- You receive a 1099 but function as part of the company’s regular staff
- You are unable to obtain your W-2 or proper year-end tax documents
- You receive unexpected 1099 forms for income you never received
If you believe you have been misclassified, did not receive proper tax forms, or received incorrect reporting, do not ignore the situation. Filing incorrectly or paying tax on income that was improperly reported can cost you significantly.
There are formal IRS procedures available to correct misclassification, address missing W-2s, and resolve improper 1099 reporting. These remedies can help protect your tax position and, in many cases, shift responsibility back to the employer where it belongs.
If you are experiencing any of these issues, I can help you evaluate your situation, correct reporting errors, and guide you through the proper resolution process. You do not have to face the IRS—or your employer—alone.
If something doesn’t look right, get professional guidance before you file.
Tax Talk
There's talk of Trump ending the Income Tax
My Opinion: I don't think this is ever going to happen. I might be biased a little, because, well, this is my livelihood, but also because there are too many complications that affect so many people. We depend on the income tax process to not only lift people's incomes through various refundable credits, but also to report on earnings through the SSA retirement system. We use it to gage if people are able to afford loans and figure out if they meet grant requirements. Then if we abolish the service, does it give those people that have huge bills to the government a free pass, kind of like what Biden wanted to do with student loans? I think there is an argument for reducing rates, and I think there is an argument for simplifying the tax code, but not eliminating it. Even for me, it gets really difficult to understand some of the IRS code sometimes. I might suggest reading the following article from Kiplinger to get a more in depth understanding.
What’s Wrong With Trump’s Plan to Abolish Income Tax | Kiplinger
