Which tax form to file for tax id number. 1099?

Question

My husband filed for a tax id number last year and got one. However, he never did anything with it and someone told him he needed to file a tax return and write "no activity" on the form. We think we are to file a 1099 form, but according to http://www.irs.gov/businesses/small/article/0,,id=129520,00.html we are confused as to what we are to do. Help!

We have not earned a penny or spent a penny in regards to this tax id number. Do we even need to bother filing any form?

Answer 1

You should file a Schedule C for the tax ID in question and you will be able to state financially that there was no activity. You can also let the IRS know if you have disposed of the business so the IRS knows not to expect any more activity.
A 1099 is what you would issue to employees if there were any. The Schedule C is attached to your 1040, so if already done, then you would need to do an ammended return and mail in to IRS.

Answer 2

there is not any "we" in the call of this remember. HE could document the lacking returns and get on the instant with the IRS. on account which you're actually not married to him (clever pass!) you haven't any longer have been given any canines in his combat and would step back. He needs to employ a smart professional (CPA or EA, no longer a seasonal section-timer at a tax prep mill) to get his bookkeeping gadget establish, prepare and document any lacking returns, and pay his back taxes, consequences, and interest. If he has workers and isn't withholding taxes and paying payroll taxes, the tax invoice for 2 years would desire to relatively placed him into financial disaster enterprise. the funds that would desire to have been withheld from their pay attracts a a hundred% have faith fund penalty on astonishing of all of the different consequences, interest, etc.

Answer 3

The forms you are referring to are IRS forms 940 and 941 on which you would report withholding from employees. You might want to look over the instructions for both of those forms regarding periods with no activity.