A friend of mine is in a divorce case. His spouse claims he makes more $$$ than he actually does because he receives no 1099s .She claims he is paid mainly cash. He is a skilled craftsman w/o contractor license, no dba,etc. and is paid checks for the jobs he does by his clients. Since these clients issue no 1099s when they are supposed to, is this his problem OR can he prove his income based on the checks they pay him to prove his income? He deposits their checks into his Chase account and then uses these monies to pay a couple of his workers. He then reports his annual income to the IRS based on his Chase statements/expenses etc? Can he show the court his bank statements to prove his income. His IRS filings/Schedule C reflect his annual account activity. Thank You Anyone.
Divorce / Separation Lawyer
Tax returns, copies of cancelled checks, and bank statements are all viable means of proving income.
Family Law Attorney
Your friend needs to seek his own legal advice on this matter. 1099's are valid documents to prove income.