Jill Biggins works for Craighead Count and the City of Jonesboro School District. She is a custodian at the Craighead County Court House (currently meeting in a Church) and a cook for the School District. In 2020, many employees of the City and County chose to work from home. Jill was not able to do so, as a custodian has to be in the building to clean it. However, Jill did lose most of her hours at the cafeteria. One day in March, a vice-principal asked Jill to take a School District van and deliver meals to special needs children and their families. Jill asked if she should clock in for this, and he told her no, she would just get a "natural per-diem" for the task. Neither Jill, nor anybody she has spoken with about this, knows what he meant by that. Jill assumed it was some kind of fancy finance guy term for free money. After a few days, Jill began to use her personal vehicle to deliver meals because it was easier to get in and out of driveways. The School District van was hard for her to back out into traffic. Each week Jill would get a check based on the number of meals she delivered. The memo line always said "mileage," but Jill never submitted an expense report. Jill's regular wages are deposited directly to her checking account. At the end of the year, Jill got two forms W-2, one from the School District and one from the County. Neither included the extra money for delivering meals. She did not get a Form 1099-NEC or any other type of 1099. Jill assumed the payments were in fact non-taxable reimbursements for her vehicle expenses, but she has no records. She could probably figure out how far she drove using the children's addresses and a map, but did not keep records. The IRS performed a payroll tax audit on the School District, and now Jill is being told that the $6,500 she received was non-employee compensation. Was it? If so, what options does Jill have?