In 2010, I did some work helping someone starting a new business. I did receive more than 600.00 for it. I am trying to file my taxes and was told I needed a 1099 and/or that the other person has to have a W-9 for me and should also send me a 1099. Will there be a penalty to either of us if I file without it? At the time, it wasn't something we thought about, but I don't want to have undeclared income. However, I don't want to pose them a problem wither since they did not have the paperwork on me. I know they don't plan to use any of it as a deduction on their own taxes, since the business did not really profit in 2010.
The coast is clear. Full speed ahead. The only time you have to attach a 1099 to your tax return is if there is tax withholding.
Disclaimer of California Attorney. Laws differ from state to state. Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract. Good Luck starts with a strategy and a plan. Robert J. Suhajda, MS,CPA Attorney-At-Law 17721 Norwalk Blvd. #43 Artesia, CA 90701 562-924-8922 Tax Relief Lawyer. Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns, Homeowner Association Strategist.
A 1099 is just an information return. You need to include the income you received regardless of whether you received a 1099 or not. There is no penalty to you for including the income, but there could be penalties and interest if you do not include it.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.