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.
You're right, you're obligated to report all income.
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9 lawyers agree
An odd question from an attorney.
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Read the following before you decide not to report:
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.
Divorce / Separation Lawyer
Yes, you do - if you want to stay out of jail, and keep your law license...
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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.
Estate Planning Attorney
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.
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