Shiner v. Turnoy

Federal 7th Circuit Court
Civil Court
Income Tax
Citation
Case Number: 
No. 14-2999
Decision Date: 
March 16, 2017
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed and remanded

Dist. Ct. erred in entering judgment in favor of plaintiff in action alleging that defendant committed tax fraud by issuing plaintiff Form 1099 that reflected that defendant’s payment of $149,000 to plaintiff in satisfaction of parties’ contract was income to plaintiff. While plaintiff argued that issuance of Form 1099 was improper because plaintiff had not accepted $149,000 check because plaintiff had claimed in state court action that defendant had owed more than $149,000 on contract, defendant was entitled to summary judgment on instant claim, since on day prior to Dist. Ct.’s judgment state court had found that plaintiff was not entitled to any more than $149,000 on said contract. Moreover, record did not show that issuance of Form 1099 was “willful” or “fraudulent,” where defendant had issued Form 1099 to plaintiff more than one month after he had sent $149,000 check at time when plaintiff had not informed defendant that he had rejected said check.