As a sole proprietor with a Schedule C, do I have to "1099" a minor I paid under $600 for cleaning my office?

Question

The purpose behind this questions is because I want to write it off as an expense on my Schedule C, however I don't want to be audited!!!!

Answer 1

Nope, $600 is the magic threshhold for issuing a 1099.

Answer 2

If you paid less than $600 to any one individual in any one tax year, a Form 1099 is not required. You may cut one if you wish but it is not required.

This isn't the type of item that would trigger an audit. As a small business you are far more likely to be audited simply because you are self-employed. There's no way around that; it's a basic fact of life.

Answer 3

If you are audited for any reason, and one of the line items selected for audit is this expense, you might have the expense disallowed if you don't have proof of payment.
Even though the 1099 is not required, it would be considered proof of payment. Cancelled checks would also suffice.

Schedule C taxpayers are the most heavily audited by the IRS.