l have worked for a small company for 3 years.l am technically a contract employee, but my employer has not had me sign a contract, nor have they accepted any contract l have proposed.The only way l know l am employed is that they transfer funds to my checking account for the hours l submit.

For the past 3 tax years l have not received a 10-99 form.l have asked multiple times, with an indifferent response, yet never received a form.l pay my taxes based on what l have been paid, as l should.

What repercussions could my employer have because of this, and how can it affect myself.

Your employer could lose his business and go to prison! He'd best get his head out of his rectum and do it quickly! You could also be prosecuted for failing to report him.

As long as you are paying taxes on the full amount, then you are fine.

The company, on the other hand, could be in a world of hurt.

And if the IRS gets involved, they can declare that you are an employee, which legally you probably are, and the company would owe back taxes, unemployment, social security and fines & penalties.

Good luck with that.

Whether your employer faces sanctions depends on how much they have paid you. If it is more than a few hundred dollars each year, they could face fines.

You, however, are okay provided you are reporting all your income on a Schedule C form. l also am an independent contractor, and l have done work for many firms, some of whom never file a 1099 Form. l simply report the income on my Schedule C.

As long as u r reporting ur income & paying ur taxes, u r in the clear.

You mentioned u r paid from the hours u submit. Are u sure u r a contract employee? It is possible u should be treated as an employee. Again, as long as u r willing to accept the present arrangement, u r not at risk. The company u work for seems to be flaky in its compliance. If IRS gets wind, the hammer could come down on them. You may want to keep ur eyes open for another opportunity.

If they pay you over $600 for the year, they are required to issue a 1099 and can be penalized if they don't. If you are reporting the amounts and paying the tax that is due, then you are not in any trouble though.