I work in the cellular phones industry and My company payes me through the IRS
I'm a parmenent alien card holder
there was a quiz for a cellular phone manfacture and I won $1300
Now the manfacture sent me a W9 from to be filled to obtain 1099 and report it,
They saying that they will report it if i filled the w9 or not.
They have my name and address but no SNN
Should I ignore them or fill it and send it back,,
will I get a tax audit if I ignored them/?
How much would be the tax owed for this,,
BTW i splitted the 1300 on 3 of my coworkers but the application was on my name and they have no liability,
please advice!
2007-01-23 19:42:55 · 7 answers · asked by bondo2 1 in Business & Finance ➔ Taxes ➔ United States
fill it out, the 1099 just means you were not taxed when the gift was given. You are in so low a tax bracket that it will work out to about 200 dollars and depending on the taxes you paid you may still get a refund or not have to pay anything. The US govt has come after people over amounts as small as 15 cents when it comes to taxes they dont mess around. Being that you dont have a SSN you are prime to be audited. What you did with the money is your problem. You should have save some of the money for taxes instead of giving it to a friend.
2007-01-23 19:47:13 · answer #1 · answered by searay092003 5 · 0⤊ 0⤋
Fill in the W9 and send it in. If you don't, then the manufacturer will have to assume that you are a tax nonresident and they will withhold 30% of the payment as statutory withholding and send it in to the IRS. The company has no leeway on this, as this is regulations promulgated by the IRS. So rather than getting a check for $1,300, you will get a check for $910 and $390 will be sent into the IRS.
As for splitting the award with three other co-workers, you should get a written agreement signed by yourself and the three co-workers. Make sure you get their SSN's. The company will issue you the 1099 and it will be reported on your SSN, so as far as the IRS is concerned, you received all the money yourself. When you report the award on your tax return, you will want to report the gross amount on your return, and then report the payments made to your coworkers as negative amounts, so the net amount you are taxed on will just be your share. You will then want to attach a statement to your return, again showing the gross amount, and then show the amounts paid to your co-workers. Make sure you have the SSN's for your coworkers on the statement. If you are then audited, you will have the signed sharing agreement to show to the IRS.
2007-01-24 10:51:23 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
They are required to report the money. The IRS will consider it income and therefore taxable under Section 61. Considering your alien status in today's world you probably don't need the problems you will get when the IRS computers indicate you have unreported income. The fact your question clearly indicates you are fully aware of the requirement is a commentary on your character as a person and the type of employee you are. I suggest you live by the rules here or consider relocating back to your home county.
2007-01-24 07:30:54 · answer #3 · answered by wph00 4 · 0⤊ 0⤋
Submit the forms! Any time the IRS notices forms not filed properly and any other oddities, your risk for audit increases exponentially. Splitting the money with the coworkers is their gain and your loss... nothing you can do about it unless you can convince them to voluntarily pay you a portion back. Tax owed on this portion depends on your total income... but paying it will certainly be less frustrating than having the IRS knocking at your door. Good Luck!
2007-01-24 03:57:08 · answer #4 · answered by cjasonfreeze 2 · 0⤊ 0⤋
Well, the best advice I can offer is to be as HONEST as possible because it may come back to bite you in the long run. I "heard" that the IRS is going to be more strict with returns this year (i.e. audits). I would play it safe and submit the 1099.
2007-01-24 03:49:33 · answer #5 · answered by Sloth for President 2012 3 · 0⤊ 0⤋
If they sent you a 1099 you are responsible for the total amount. Believe me there is a paper trail that will leads to you.
2007-01-24 03:58:15 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Oh good lord, by all means report it! If there's one thing you really need to learn quickly and understand in this country it's this: do not screw with the IRS! They can make your life a living hell! It's not worth the gamble to blow this off.
2007-01-24 03:53:47 · answer #7 · answered by Subtle T 1 · 0⤊ 0⤋