10

A corporation may need to prove their expenses to the IRS. One way to do this provide the IRS with information regarding their employees and vendors. The employees have Federal, state and local income taxes withheld, plus social security and medicare. At the end of the year they provide the employee and the IRS with this information. They also do provide ...


8

There's a regulation for that, however I suggest consulting with an experienced EA/CPA licensed in your State as to how to proceed. There is no federal law which prevents a withholding agent from legally making a payment to a payee for the sole reason that the payee does not have a TIN. However, sections 6721, 6722, and 6723 of the Internal ...


8

The IRS can impose a penalty for not issuing 1099's when you are required to. This penalty can ranges from $30-$100 per form you didn't file. It can go up to $250 per form if they think you intentionally disregarded this requirement. I'm betting the situations you are citing where they sometimes don't is because there are some situations where they don't ...


7

Companies like TurboTax can import data like W-2 if its available to them, but I believe entering the 1099-MISC is a manual operation. Generally you should be paying estimated tax throughout the year to avoid penalty. From IRS - Topic No. 306 Penalty for Underpayment of Estimated Tax: Generally, most taxpayers will avoid this penalty if they either owe ...


6

I agree that you should have received both a 1099 and a W2 from your employer. They may be reluctant to do that because some people believe that could trigger an IRS audit. The reason is that independent contractor vs employee is supposed to be defined by your job function, not by your choice. If you were a contractor and then switched to be an employee ...


6

Why would the IRS be coming after you if you reported the income? If you reported everything, then the IRS will use the 1099 to cross-check, see that everything is in order, be happy and done with it. The lady was supposed to give you the 1099 by the end of January, and she may be penalized by the IRS for being late, but as long as you/wifey reported all ...


5

Does he need to file a tax return in this situation? Will the IRS be concerned that he did not file even if he received a 1099? No. However, if you don't file the IRS may come back asking why, or "make up" a return for you assuming that the whole amount on the 1099-MISC is your net earnings. So in the end, I suspect you'll end up filing even though you ...


5

No, on the contrary. You'll be paying taxes on the income, and then again - on the gift, since the value is above the exemption limit.


5

Ideally the customer(s) wouldn't have submitted a 1099-MISC since it was paid via PayPal, and ideally when they make a mistake like this they would correct it. Unfortunately, the IRS doesn't know the situation, they just know that you didn't report all of the 1099 income on your tax return which they have copies of. If you can't get the customer(s) to send ...


5

From the IRS: How do I know if I have to file quarterly individual estimated tax payments? Answer: Generally, you must make estimated tax payments for the current tax year if both of the following apply: You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits. You ...


5

Unless your company uses accrual basis then you recognize income and expenses when money changes hands. And unless your company has a non-calendar fiscal year you recognize income in the year it was earned/received depending on accounting method. The vast majority of self-employed and small companies are on cash basis and use calendar year for their fiscal ...


4

I'm not sure how this gets entered in TurboTax, but this income from the company should be included in the Schedule C (or C-EZ) Line 1 Gross Receipts total, along with all of your 1099-MISC income from your business and any other income that your business took in. You don't need a 1099 from them, and the IRS doesn't care (at least from your perspective) if ...


4

I made an appointment with and visited the taxpayer assistance center of my local IRS office. This is what I was told: I should contact the employer and ask them to fix this. If contacting the employer is not possible or not successful, I should submit a Form SS-8 detailing the situation and providing all relevant details. The SS-8 is separate from the tax ...


4

Report the amounts as they are. If the IRS sends a letter asking why your report doesn't match the reporting on the 1099-MISC, you'll respond with the exact explanation you gave in your question and a copy of the said settlement. That said, I suggest you have a paid professional do that for you, including properly formulating the statements attached to your ...


4

Typically you can only claim as business deductions those expenses which strictly relate to your business. In some cases, if you have a dedicated home office in your house, you can specify that expenses related to this space (furniture, etc.) are business expenses because it is a dedicated space. For example, I know of someone in sports broadcasting who ...


4

Are the amounts in those boxes taxes that have already been removed? Yes. If they are, how do I report these totals? When I entered the information from the 1099-MISC, it only asked for the total, and didn't ask for (what I thought were) the taxes already taken out. It should appear on your 1040 line 64 (and similar line on your State tax return). If ...


4

Corporations file their own tax returns and have their own, more rigorous, reporting requirements and standards so they are relatively easier to audit (Imagine 1 corporate audit vs 1,000 single-member LLC audits, and more detailed records with the corporate returns). Additionally, corporations may use a fiscal year that does not match the calendar year, ...


4

Your property management company did this incorrectly. The late fees should be included in Box 1. You should request that they provide a corrected 1099-MISC. Given that they messed that up, you should also verify they are reporting gross rent + late fees not deducting their fees from reported rents. If they refuse or are unable to issue a corrected 1099-...


4

Do I need to wait for my W-2 or do companies like Turbotax etc. auto import that stuff? The tax software can import directly some W-2 data. It depends on what company you work for, and what payroll company they use. But even if the software can ingest the W-2 without you having to enter the numbers, it can't do that until the employer/payroll company ...


3

The 1(a) and 1(b) separation may have been explicit on the return filed electronically. There's a lot of information being electronically filed that you would add in "statements" as attachments to your return if you filed it on paper. One of these statements would be the breakdown for line 1 of your Schedule C, which the matching computer would then be using ...


3

You do not need to file 1099-MISC to yourself if you're running as a sole proprietor - you are yourself. However, you do not deduct this amount from your business income and report it as royalties either. Your self-published book is your business income subject to SE tax. You can only deduct the actual costs of producing/writing, and the remaining amount is ...


3

Per IRS regulations, if your stipend is not paying you for qualified expenses (primarily, tuition and books; explicitly not room and board or travel), it is taxable. It doesn't require self-employment taxes (which are Medicare and FICA, normally paid in part by an employer), but it is taxable income from an income tax perspective. You can generally deduct ...


3

I agree with Charles and Hart in the comments that the size of the investment does matter, especially because you have no expected return on investment. Meaning, as you have no "followers" now, it is unlikely that buying a Tesla will result in automatic fame or notoriety. I would say that you cannot expense a vehicle to start a blog about that vehicle. The ...


3

The IRS Free Fillable Forms does, or at least I entered info from several 1099s in mine.


3

The IRS has a question-and-answer article that seems to apply to your situation: If payment for services you provided is listed in box 7 of Form 1099-MISC, Miscellaneous Income, the payer is treating you as a self-employed worker, also referred to as an independent contractor. You don't necessarily have to have a business for payments for your ...


3

The linked article starts with the line When it comes to 1099s, many business owners find themselves in a guessing game, wondering what exactly the rules and requirements are. The article is targeted towards business owners, not individuals. The list doesn't apply to you. Would it ever apply to an individual? Yes, sort of. We had a nanny for my baby, ...


2

No, do not file a Form 1099. You should not issue a form to yourself and you have no separate entity to issue one. The reporting obligation is Form 1040, plus Schedule C. You may have followed a wrong turn somewhere in the TurboTax questionnaire or it may not have picked up the subtleties of your situation. The business income is already yours. Some ...


2

Am I required to send form 1099 to non-US citizens who are not even residing in the US? Since they're not required to file US taxes, do I still have to send the form to them? That's tricky. You need to get W8/W9 from them, and act accordingly. You may need to withhold 30% (or different percentage, depending on tax treaty they claim on W8). If you withhold ...


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