<prompt> Human: Im looking for some advice here, Im very bad when it comes to this sort of thing... In 2014 I was working for an employer who claimed me as a 1099, andi should not have been. I had a set schedule, machines were provided, etc. I work on custom carsrace cars. Overwhelmed by the thought of taxes I filed for an extension, and forgot about it. I was sent a fine from the IRS stating I owed 551 in taxes for 2014 plus their fines and interest... Totalling about 720. This may not seem like a lot of money to some, but to me it is. Now I filled out, but havent submitted, a SS-8 contesting my 1099 status, then a 8919 form for uncollected SS and medicare... The total, after calculating my yearly pay, for the 8919 was 2419! My questions here are should I just suck it up and pay the first amount due 720 or will I be hit with additional charges since the IRS would still think Im an independent contractor? I have a drawer full of receipts from tools and other deductibles from 2014, is it too late since they sent me a fine to claim them? Contesting the 1099 status or just paying the fine and staying as 1099... Which will cost me less?Any information at all on this matter will be greatly appreciated. Im a humble man who works with his hands, finance and dealing with business matters like this stress me out in ways that dont seem rational. Thanks for your help.  <response>: Im a little confused as to why the IRS states you owe 720 when they think you are a contractor since you didnt file yet for 2014 but they probably received a 1099 for you, yet when you fill out 8919 and a Form 1040 I presume, you find your tax is 2419. Something is amiss here, because filing as W-2 and paying only half the Soc Sec and Medicare should end up with you having a lower tax liability than if you do it as 1099 contractor with Schedule C unless you have lots of deductible business expenses.Can you clarify: If you decide to file as an employee, with a Form 1040 and Form 8919, what is the total income tax and the total Soc Sec and Medicare taxes youd have as liability? If you were instead to file with 1040 and Schedule C for 1099, what is your total tax income tax and SE taxes?Ignore the amount that the IRS mentioned you owing and their fines and interest, for now. I think you need to focus on which method of filing is least expensive. I would expect that to be as W-2, disputing via SS-8. 