What are the implications for myself, an individual, who failed to file a 1099 to a vendor, for monies paid?

Question

I was not aware that I needed to do this. The years in question are 2005, 2006. A non incorparated individual, who recieved in excess of 7500.00 for that time period.

Answer 1

the second answer is correct. Individuals are not required to file a 1099 for amount paid to vendors (assuming you are not running a business). If you are running a business (i.e., filing on Schedule C of your 1040), you would be required to file a 1099 for amounts paid to a vendor.

That said, if you were required to file the 1099 (and the 1096 - which is the transmittal for the 1099s) you could be subject to penalties. However, being that you only missed one 1099 for one year, the penalties would most likely be waived.

Answer 2

Did you receive the money or pay the money?

If you received the money and didn't declare it as income, the implication is that you probably owe taxes on that money. If your other income subject to SS and Medicare was below the threshold (about $90K), then you owe about 15% of your net income after expenses for SS and Medicare. In addition, you will owe income taxes on your net income. File amended returns to correct the omission of the 1099 income.

If you instead paid this money and didn't file a 1099MISC when one was required, then you could be fined up to 10% of the amount not reported, or $750.

Answer 3

Individuals are not required to prepare and file Forms 1099. Therefore there are not implications for not doing so.

Answer 4

Quarterly taxes (anticipated earnings) are based upon no count in case you owe a definite quantity of money on the top of the three hundred and sixty 5 days that exceeds the allowable scarcity. in the experience that your earnings Tax exceeds a definite quantity there will be a Penalty imposed. i might anticipate which you're making too lots funds and which you will would desire to pay added taxes on the top of the three hundred and sixty 5 days. in case you have any theory how lots you will would desire to pay on the top of the three hundred and sixty 5 days, you will desire to pay quarterly or pay the penalty. attempt to maintain it in this form of style which you will get a minimum of a small refund on the top of the three hundred and sixty 5 days. i won't be able to furnish you specifics, yet I pay quarterly via fact the individuals I artwork for do no longer take out adequate withholding tax. Say which you're making adequate 1099 funds to ow 2000 funds on the top of the three hundred and sixty 5 days. you would be required to pay a penalty and that will enhance your tax. extra appropriate to pay an anticipated tax to verify you do no longer owe them something on the top of the three hundred and sixty 5 days. you are able to telephone the IRS or write to them for quarterly types to deliver in. preclude some complication that way.