I read these forums all the time and after reading months of posts about 1099 and credit reports I have come to the conclusion that there is a lot of misinformation about who can see your tax returns and how things show up on your credit report. I know that I am about to get flamed but I have my fire retardent suit on.
1099:
This is actually quite easy. Your tax records are private and no one can view them. It is even difficult to get them with a subpoena. It is not impossible but no one is going to subpoena your tax returns for a job. So again no one can get your tax returns from the IRS and no employer can give out your tax information. It is illegal.
So how come they do show up for some people? This is a good question and there is an answer. They get then from your tax preparer. So let's say you walk into H&R block and you have them do your taxes. You will sign a consent form that let's them use your information. This is not illegal and by law they can do whatever they like with your information. They can send your information to their "affiliates" and who knows who they are. It is most likely sold to marketing companies but it can be anyone. It's totally legal because they did not get it from the IRS, they got it from you with your consent.
Here is the second catch. The IRS does not provide e-filing. They accept e-filing from third parties like H&R block but you cannot directly e-file with them. So if you e-file with anyone or use an software that e-files then you are giving them consent to use your information.
Solution: You file with a paper form and send it directly to the IRS. Do NOT let anyone third party prepare your taxes. Go to the post office and get the paper form and fill it out yourself.
This way no one can see your tax record.
Credit Reports:
The first thing to know is how they get your employer information. Well they don't get it from your employer they get it from you!!! When you fill out an application for something and put your employer on there they record the information. Credit Bureaus receive all their information from creditors. They only know what you tell them. I know that there all all these rumors going around but there is no conspiracy here. I am not saying that your employment will never show up but there is no reason for a cam company to inform the credit bureau that you work for them. There is no law telling them to and where is the profit in it. Credit bureaus aren't paying for anything. They get it all for free from creditors.
So to sum it up. If you file with a paper form no one will see your tax returns and if you never put a cam company as an employer on ANYTHING except your mailed in tax returns then it is extremely unlikely and I mean extremely unlikely that it will show up on your credit report.



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