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Do i need to report income from a source that is not 1099?

Pasadena, CA |

Last year I had a solo law practice (not tax law) where I earned a modest 27k-28k total. However I only received 1099s totaling about $7,000. Do I need to report all the other money I received from clients in my 2011 tax returns? I assume the answer is yes.

Attorney Answers 8

Posted

You're right, you're obligated to report all income.

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Posted

An odd question from an attorney.

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1 comment

Jorge A Pena

Jorge A Pena

Posted

Just wanted to make sure.

Posted

Your assumption is correct.

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Posted

Read the following before you decide not to report:

http://www.klasing-associates.com/Criminal-Tax-Representation-FAQ/What-Specifically-is-Attempted-Income-Tax-Evasion.shtml

In every audit standard procedure is to examine all deposits to your business accoutns. If deposits total more than what was reported you could wind up doing time... No joke.

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Posted

Yes, you do - if you want to stay out of jail, and keep your law license...

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Posted

I think you get the idea, but because you're a lawyer I'll give you a cite: IRC sec. 61(a)(1) provides, "Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including...[c]ompensation for services...." Your income from a law practice is, of course, compensation for services.

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Posted

Yes. Schedule C.

BW

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Posted

Of course the answer is yes. You earned the money irrespective of whether a 1099 was issued. Not to do so would be called 'moral turpitude' at a minimum.

If you liked this answer, click on the thumbs up or vote it best answer! Thanks. Eliz. C. A. Johnson Post Office Box 8 Danville, California 94526-0008 Legal disclaimer: I do not practice law in any state but California. As such, any responses to posted inquiries, such as the one above, are limited to a general understanding of law in California and not to any other jurisdiction. In addition, no response to any posted inquiry should be deemed to constitute legal advice, nor to constitute the existence of an attorney/client or other contractual or fiduciary relationship, inasmuch as legal advice can only be provided in circumstances in which the attorney is able to ask questions of the person seeking legal advice and to thus gather appropriate information.

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