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

Asked almost 2 years ago - 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)

  1. Pamela Koslyn

    Contributor Level 20

    9

    Lawyers agree

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

    Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to... more
  2. Michael Raymond Daymude

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . An odd question from an attorney.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  3. Eunjin Chang

    Contributor Level 6

    5

    Lawyers agree

    Answered . Your assumption is correct.

  4. David Warren Klasing

    Pro

    Contributor Level 11

    4

    Lawyers agree

    Answered . Read the following before you decide not to report:

    http://www.klasing-associates.com/Criminal-Tax-...

    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.

  5. Robert Kenneth Morrow

    Contributor Level 9

    4

    Lawyers agree

    Answered . 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.

  6. Eliz C A Johnson

    Contributor Level 17

    3

    Lawyers agree

    Answered . 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... more
  7. Bruce Allan Wilson

    Contributor Level 15

    2

    Lawyers agree

    Answered . Yes. Schedule C.

    BW

  8. M. Robert Perez III

    Contributor Level 10

    3

    Lawyers agree

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

    These answers are provided for educational purposes only, and should not be construed to be either formal legal... more

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