Employee gets fired over email at midnight with no warning, reports company to the IRS for misclassifying him as a contractor: 'It's mind-blowing how fast things can go sideways when companies cut corners'

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Isabella Penn
Aug 2, 2025 5:00 PM EDT

In today's economy, it's not uncommon to juggle multiple jobs just to keep up with rent, bills, and the ever-increasing cost of living. Side hustles aren't just trendy anymore... sometimes they're actually necessary. Whether it's freelance work, gig apps, or 1099 contracts, a lot of people are grinding after hours to build a financial cushion. I've done it too, and honestly, I respect anyone who can balance multiple gigs without letting one slip.

But sometimes, companies take advantage of this hustle culture. And when they do, they deserve to be called out.

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  • One person online shared their experience working a 1099 contract job that brought in an extra $3K a month on top of their full-time work. They were reliable, always turned in work on time, and even received glowing feedback from clients. 

    Still, the company started acting like they owned them by demanding hourly email check-ins, scheduled work hours, and notice for any out-of-office time. That’s not how 1099 contracts work.

    Then one night, they were fired via email. No call, no warning. So, they fought back. They reported the company to the IRS for misclassifying them as a contractor when they were clearly being treated like an employee.

  • Ob 5 20 INVOICE Invoice Date 02/02/2022 Due date 08/03/2022 Total: $280 ALO Price Total 5500 0025 0015 iac constellation he water-bearer" 2 $100 5 ign of the zodiac 5 $120 isible in spring tellation llation L $200 $130 WEEK 12 S 0095 Your Personal Name Date of birth Nationality TAX & FINANCES Unit No Street No Town/City/Suburb Street State Post Code Gender Male Female Country DEPLOYMENT Puting ay into action is how your marketing plan should work. Yes No e based on how you gain sales by acquirin
    via Behnam Norouzi For Unsplash+

  • "Terminated without warning. Reported them for tax evasion"

    I was working a 1099 position that was bringing in around an extra $3k a month. I was able to do this job alongside my full- time job with no issues. I turned in my work on time, I attended all meetings, and even had
    via aboveroomtempqueso
  • gotten a great report from one of my clients. My job must have suspected I was doing more than one position, however. They started demanding that I check my email at least once an hour, and even set hours for me as a 1099 worker. I
    via aboveroomtempqueso
  • had to report when I was out of office, whether for injury or something else. I pointed out how I was a 1099 contractor and that none of those things were a contractual obligation; in fact, the entire reason I took on the extra work
    via aboveroomtempqueso
  • with this company was the flexibility. They ignored this and continued to push. A few weeks ago, at nearly midnight, I received a termination email. No phone call. Not
    via aboveroomtempqueso
  • even a text message. I went to log on to my computer the next day and saw my credentials were invalid. I reached out to my supervisor and was told to check my personal email, "If you even do that," and that was the end of it.
    via aboveroomtempqueso
  • FRED
    via Igor Omilaev for Unsplash+
  • I stewed in it a few days before I finally did something: I reported them for mislabeling my position as 1099 when in fact I should have been a W2 employee. The IRS has a ton of information on what constitutes 1099
    via aboveroomtempqueso
  • work and what doesn't, and I met none of the criteria for 1099 work. They were doing this to avoid paying taxes on their employees, and to avoid having to offer insurance. So...I reported them.
    via aboveroomtempqueso
  • I would wager that this is still ongoing for them, as it's only been a few weeks. I'm not excited about potentially putting people out of work, but I'm tired of being fed over by employers.
    via aboveroomtempqueso
  • Tremenda-Carucha It's mind-blowing how fast things can go sideways when companies cut corners like that... I mean, you're working hard and then boom, you're gone. How do people even keep going after something like that?
    via Tremenda-Carucha
  • jiggalette I hate employers that do sh like this. It actually happens a lot more than we think. Good for you. They deserve everything coming to them
    via jiggalette
  • aim2misbehave17 Report to your state department of labor. The IRS is unlikely to act quickly, if at all in this time of critical understaffing. But state labor boards don't mess around with this.
    via aim2misbehave17
  • Diggist080211 I reported my employer for the same thing years ago. He was trying to have his cake and eat it too by calling me a contractor and yet trying to treat me like an employee. He had to pay
    via Diggist080211
  • my federal taxes after I quit AND that of other employees he was over. Big money.
    via Diggist080211
  • liptoniceteabagger You should also report them to your state labor board. The IRS will undoubtably take a long time to respond to this, if they even have the
    via liptoniceteabagger
  • manpower to do so at this point. Your state labor board on the other hand will likely respond fairly quickly.
    via liptoniceteabagger

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employee fired job email IRS work reported terminated petty revenge 1099 freelance Horrible Bosses company contractor karma
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