My question involves employment and labor law for the state of: Texas?
I just received a 2009 MISC 1099 (other income) from an old employer for over $2,500.
I was dumb founded since the last contact/employment with the company was late 2005/early 2006.
I called their banking and compensation department:
They said it was money I owed them. They mentioned about me getting letters/calls, but I haven't had any correspondence with them since 2006.
I told them that they have my address (they sent to 1099 to it), and that I have not received anything else.
I was told that I owed them money from 2005, but she couldn't tell me what for, and was going to call me back.
The lady mentioned the issue already being sent to a collection agency??
Here is my question? I do not think I owe them anything. I think they are scrambling for $$$. They are a financial services firm that seemed as if they could go under during the crisis.
Is it possible for an employer to sell this so called 'owed money' to a collection agency? If they can, would this be reported to the credit agencies since my employer was never a creditor (No a loan)?
If so, how can they be trying to 'write it off' by sending me MISC 1099 Income for 2009 (other income)? Obviously, this leaves me with a tax burden for 2009?
It just all seems odd, and I do not know what to do, or whom to ask for help.
I want to fight what ever is happening, and I will, if I am confident that this can't be report as bad debt (I am about to buy a home).
Thank You For Your Time.

