Originally posted by doormat
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You are not wrong. Sending a false 1099-misc to someone knowing it is wrong is fraud. You have every right to report it to the IRS criminal investigation people. It might even help your case if IRS were to require you to prove you didn't get the money. I would insist that felony charges be filed against these people, as issuing false 1099s and claiming bogus tax deductions is tax evasion.
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