<prompt> Human: I helped a friend set up a business, then we parted ways after about 2 months. I was paid 500 a week under the table starting October ending December 2016.Recently I got a letter from the IRS saying I owe them 2k something for not filing a 1099 for this income in 2016.What happened here, and what should I do?Edit for clarification:This was not steady employment, this was just to get the location set up. I was told that under 5k wasnt income that I needed to declare. We parted ways so that he and I wouldnt have to file it. I was labeled as an independent vendor which has a 5k ceiling.  <response>: You tried to commit tax fraud and failed. You should file taxes like the law requires and pay what you owe. 