2007-01-26 08:47:48 · 4 answers · asked by Kea 1 in Business & Finance ➔ Taxes ➔ United States
yes and if you do and get caught you will go to jail. but hey its federal prison. its like a vacation.
2007-01-26 08:56:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
"Individuals" don't send 1099's.
"Businesses" send them out and they form the basis of business tax deductions. It's not normal for a business to send out a 1099 for every payment they ever made to businesses.
The only ones you should really send out are for payments you made that don't appear on invoices (payments that don't have a document audit trail). The 1099 will serve as proof that the person was not an employee but had their own business and will pay the self-employment tax on their own.
Another way to decide this is in how you paid. Did you pay cash? Automatic 1099. Did you pay in the form of a check and make the check out to a person? Automatic 1099 (because you don't know if they have a business license). Did you make the check out to the name of a business? No 1099 necessary, because without a business account, they can't cash the check.
2007-01-26 17:03:18 · answer #2 · answered by Anonymous · 0⤊ 1⤋
You give 1099's to individuals. You do not have to give 1099's to corporations or partnerships. If you are an individual taxpayer running a sole properietorship, you MUST give 1099's if the individual recipient earned more than $600. If you own the corporation or partnership, then your entity sends out the 1099-MISC.
2007-01-26 18:08:28 · answer #3 · answered by WealthBuilder 4 · 0⤊ 1⤋
If you hired a company rather than an individual to do work for you, you don't have to give them a 1099.
2007-01-26 17:03:51 · answer #4 · answered by Judy 7 · 0⤊ 0⤋