My girlfriend received a certified letter from the IRS telling her she owed almost $20,000 to the IRS for the 2012 tax year.
She called the IRS and learned that the reason for the charge was that Square had reported income under her social security number. She had signed up with Square, which asks for your name and social, but had also supplied a business EIN which the income should have been reported under.
What are her options?
Well, I would first like to thank all of you for immediately jumping to conclusions and essentially throwing around accusations of tax evasion. All she had to do was send a couple of statements from the business bank account to Square and they re-issued the corrected 1099-Ks.