For the last 4 years my employer has paid me by 1099 when I was actually an employee. According to the IRS Qualifications list of 20 questions I can answer "Yes" to all with the exception of question number 5. I have Never signed a contract and I do not run a business doing that work. My hours were dictated to me as well as the work to be done. In addition I was also trained by a company to run specific software and worked at his location on all of his equipment. I have not been able to file taxes for the last 4 years because I was afraid that I would be committing tax fraud. Last year I was forced under duress to take a $100 a week pay cut. Am I able to pursue damages to recover the money that should have been paid for taxes as well as recover the money that I lost because of the pay cut? I might also add that this employer has categorically committed Social Security Fraud among other things. I have all of the records from the company.
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