My tax advisor says employers don't send 1099s to IRS. Then how does IRS know if you have 1099 income to claim. Can you
just neglect to claim that income. Don't they have to match your tax form with something?
2006-06-16 17:37:48 · 12 answers · asked by KJH 2 in Business & Finance ➔ Personal Finance
He is correct, they don't send it. But, if you don't send it on your own they will send you a letter that says they know you have made a certain amount and they didn't recieve a 1099 and why did they not receive it. Is he not well-versed in non-profit tax regulations? Any income you claim as a non-profit goes back to the IRS. If you file taxes annually on the business it goes back to the IRS. If you make under $100,000 you should file a 1099EZ and if you make over $100,000 you should file a 1099. The IRS doesn't have to match or do anything. If you have a non-profit business of your own, then you need to go to IRS.GOV and start pulling the information you need to file your taxes correctly. You will be audited and/or sued by the IRS if you don't. Seek the help of other non-profits for advice on this. Don't let it go.
2006-06-16 17:46:08 · answer #1 · answered by Anonymous · 9⤊ 2⤋
By law, companies are required to submit 1099 information to the IRS. If a company does not, then they are very stupid, as the 1099 recipient can send a copy to the IRS, leading to an audit and fines on the company.
If the company doesn't give you a 1099, and doesn't file anything, then you are in that gray area where only an IRS audit can catch you.
However, most people who get a 1099 will assume that it's been sent to the IRS (that's the law), and will report that income.
This is a HUGE red flag for the IRS to check out the company involved. If you received a 1099, and report it, then you have no further tax liability.
Ultimately, you and the company are the key factors involved. If one of you doesn't report something, that's the red flag. If both do, or both do not, then the IRS doesn't know any better. But if both aren't going to report, then the forms should never have been completed.
2006-06-16 17:59:06 · answer #2 · answered by Karl the Webmaster 3 · 0⤊ 0⤋
If your employer does not file a 1099 the the money is invisable to the IRS atleast thats what my CPA said, but MAKE SURE they didn't file it and just neglect to give you your forms. I ran into that a few years back, never received my papers, I assumed that no form was filed. . . . I was wrong, and got a letter from the IRS last year saying I owed them 24k - Broke my heart and my wallet.
2006-06-16 17:43:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
When you are sent a 1099, a copy of this is also sent to the IRS, that's how they know.
Find yourself a better tax adviser.
2006-06-16 17:45:56 · answer #4 · answered by jumpingrightin 6 · 0⤊ 0⤋
Most employers do send this information to the IRS. If not directly, then indirectly through their companies tax reports. There is a paper trial for most all wages paid.
2006-06-16 18:08:18 · answer #5 · answered by Carolyn 1 · 0⤊ 0⤋
Your tax advisor is not your friend! They DO send the Irs a copy or a notification of moneys paid to you without tax withheld.
They have to do so to be able to deduct this wage to you off their own taxes.
You need a new accountant friend, one who isn' t going to get you in trouble!
2006-06-16 17:45:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If the person who paid you submits a 1040 report to the IRS.
2006-06-16 17:46:24 · answer #7 · answered by nea 1 · 0⤊ 0⤋
Everytime you "neglect" to claim income, especially income with a paper trail, you run the risk of owing down the road.
2006-06-16 17:46:16 · answer #8 · answered by johngrobmyer 5 · 0⤊ 0⤋
Don't cheat the IRS or you'll regret it. Better yet, support the FairTax and do away with the IRS and all of it's stinking forms!
2006-06-16 18:12:27 · answer #9 · answered by undo-me 5 · 1⤊ 0⤋
when i was younger i hada 1099 and i filed it like i do now the irs knows everything
2006-06-16 17:47:12 · answer #10 · answered by deviousandsweet 2 · 0⤊ 0⤋