While working in the 2012 year, I was given a 1099-MISC with no withholding, just box 7 and nothing else. Being new, I figured this was normal and paid my dues. This year, for the 2013 year I was working on a W-4, and given a W-2 with withholding. When having my taxes filed (by the same preparer as last year), they questioned what had changed and my answer was nothing (I work the same scheduled 40 hours, at his business, same tasks, he provides all tools/etc, pays by hour as normal, etc...). This is when I was told I was being misclassified last year, and from my understanding a lot of employers do this to save money from having to withhold and pay taxes.
The problem lies with what am I to do now? Contacting the IRS is impossible, especially right now and I get mixed answers because at times their seems to be a language or communication barrier. I attempted to question a local CPA and was instructed I would need to contact the IRS for correct forms as he did not know exactly, and also to contact the CA Dept. of Unemployment and CA Franchise Tax board. I'm confused beyond belief...
Any help would help greatly, and would be greatly appreciated!
Thank you in advance,
MrUnknown (for privacy, of course...)
P.S. The employer is a sole-propietary, hires mainly family and close friends. The situation I'm in is the same for them, in excess of 5+ years than myself (which is very sad).