# In deep do-do



## Jason Whipple (Dec 22, 2007)

This is the first year I've ever had to send out 1099's. I thought I had till Feb. 28 to send them out. Finding out today that it should have gone out by the end of last month and we have till the 28th to file with the Feds

So what to do now? I have three subs and a total of 6k paid to them. Do I eat it and pay the taxes? Can I send them out late? What if some of these subs already completed there taxes for this year? Oh st! I'm also waiting for a 1099 from another contractor I worked for last summer for about 12K.


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## Celtic (May 23, 2007)

Send them out.
Late is better than never.
They can always file an amended return.

What are you planning for the 1099 you are waiting on?


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## Jason Whipple (Dec 22, 2007)

Celtic said:


> What are you planning for the 1099 you are waiting on?


I guess I'll have to contact him to see what the hold up is. The guy is a millionaire real estate tycoon, construction is a side gig for him. He may not even care about it. I'm still entitled to a 1099 as an LLC from what I understood, maybe not.


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## thom (Nov 3, 2006)

send them out

the subs will have paid the proper taxes anyway (assuming they don't cheat) so it's no big deal. You shouldn't even be thinking about paying their taxes for them.

For building contractors 1099's aren't that big of a deal. Assuming they really are subs, they have materials, labor, and overhead that will come out of that. 

It's a bigger issue for other types of contractors, like real estate agents. Their 1099's generally represent real taxable income.


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## wizendwizard (Nov 11, 2007)

JW,
All tax forms must be mailed by midnight on 01/31. Send em out they can do amendments. It may cost you a penalty but thats better than eating it.


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## Floordude (Aug 30, 2007)

thom said:


> send them out
> 
> the subs will have paid the proper taxes anyway (assuming they don't cheat) so it's no big deal. You shouldn't even be thinking about paying their taxes for them.
> 
> ...




Exactly! You don't send 1099's into the IRS like W-2's, when you file. If they are running legit, they should even need the 1099.

I go by my deposits, and paper trail. My 1099's never add to what I deposit.


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## Jason Whipple (Dec 22, 2007)

wizendwizard said:


> JW,
> All tax forms must be mailed by midnight on 01/31. Send em out they can do amendments. It may cost you a penalty but thats better than eating it.


We're workin on it, should have them out by Tuesday. Wonder what the fine is? Anyone know or have actually had the fine impossed?

We're downloading our turbo tax right now on one computer and the other is playing the blues; "Mean ol world" by little Walter to be exact. How fitting:no:


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## Tom F. (Sep 3, 2007)

LLCs, Incs, etc. do not require 1099s.


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## wizendwizard (Nov 11, 2007)

Tom F. said:


> LLCs, Incs, etc. do not require 1099s.


I've never heard of this one.

JW, fine amount is probably dependant on amounts and if they are reported as not recieved.


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## Tin Cup (Nov 22, 2007)

Jason,

if your business is incorporated you don't need a 1099 from the contractor you did work for.

send the ones out you owe, i've been way late many times. just call the contractors you owe them to, make sure they know they are coming and how much the total is. 

doubtfull many business have already filed their returns.

Just filed mine though, personal, one corporation and an LLC. First time ever I've had mine done this early. 

Wanna know the trick to getting it all done this quick by a CPA ?

Tin Cup


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## Jason Whipple (Dec 22, 2007)

Tin Cup said:


> Jason,
> 
> if your business is incorporated you don't need a 1099 from the contractor you did work for.
> 
> Tin Cup


We're LLC not corp. We file like a sole proprietor basically.


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## ultimatetouch (May 27, 2006)

I just had to remind my egg head accountant about them. He never said anything, always trying to do as little as possible and charge me as much as they can . I am getting the list of subs to him tomorrow even though he has my quickbooks and cant print them himself.


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## Jason Whipple (Dec 22, 2007)

ultimatetouch said:


> I just had to remind my egg head accountant about them. He never said anything, always trying to do as little as possible and charge me as much as they can . I am getting the list of subs to him tomorrow even though he has my quickbooks and cant print them himself.


Makes my $100 Turbo tax sound even better now. At least if there's a screw up it's my fault and don't have to pay someone else $600 to screw it up in my place:laughing:


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## BTD (Jan 22, 2008)

LLC's do get them not corps though. The basic thought behind it is that it is a big deal if you have subs that dont like you, the envelope better be postmarked on 1/31. If you are on good terms it isnt as big of a deal but I would do it as a CYA measure.


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## Tin Cup (Nov 22, 2007)

Jason W said:


> Makes my $100 Turbo tax sound even better now. At least if there's a screw up it's my fault and don't have to pay someone else $600 to screw it up in my place:laughing:


 
Jason,

I've read some intelligent posts by you over the last few months that i've been reading this site, but, if you are saying you are doing your own tax preparation out of a box......we gotta talk.

I have a business degree, and although i do my own "bookkeeping" on quickbooks, I've never considered doing my own tax prep since i've been a grownup with kids, home, investments and a business. No way you can consider everything as well as a good CPA who's trained and updated on all issues you need to consider. 8 years now, it's the only bill I don't mind paying.

Ever seen the commercial where the wife asks her hubby to "ask the box".

plenty of guys on this site seem quick to criticise guys who perform trades outside of their training, i'll bet several of them are too cheap and do their own tax prep. Watch who this statement fishes out !


The contractors who will bag on CPA's are the ones who haven't found a good one yet. 

Don't ask the box ! take it back and put the $100 towards the CPA.

Good Luck, 

Tin Cup


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## AtlanticWBConst (Mar 29, 2006)

...Send 'em out...late or not...and don't worry about it....


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## DavidC (Feb 16, 2008)

Jason,

The 1099's are an information only form, meaning you didn't withold any monies. The IRS will have no idea when you sent them if you report to them on time. As someone else stated, the only danger is a pissed off sub that would blow you in. Send them out ASAP and don't worry.

I gotta agree about the accountant too. I get our payroll handled for about $30/week (2 employees) and taxes done for about $400 for the LLC and my personal taxes. Saves me a lot of time do be more productive earning the money to worry about the taxes.

Good Luck
Dave


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## Jason Whipple (Dec 22, 2007)

Thank guys,

We're sending them out in tomorrows mail since the P/O is closed today. I have one sub that turned out to be a nut job so he might cause me a problem, we'll see.

I've been using Turbo tax for about 3 years now. I've had a DBA/sole proprietor business over those years for side work and fill in work between jobs. You'd be suprised how well it works. It walks you through eveything step by step, keeps track of previous years losses and tool deprieciasions. It only lets you deduct so much, then it advises you to save some for next year (when alowed) since it won't enhance our refund for that tax year. It also shows us all our options through the way and shows the result of our tax or refund both ways so we can make the better decision. We can also e file when its done.

We will most likely be using a tax accountant next year if things go well in year two for this business. Our taxes are pretty simple but when I get a couple of employee's this year I think we'll be using a service that covers all the bases for us like the one DavidC mentioned. We do have a good friend who is a CPA and she's been gracious enough to answer our questions during our tax prep. when needed.


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## Pearce Services (Nov 21, 2005)

If they didn't do their taxes yet, no harm!
If they did taxes, and included that revenue, again no harm!
If they did taxes, and failed to account for the revenue, I would think that they are more at risk if the IRS finds out (than you are) since they failed to report income. I would guess that the guy that doesn't report all his income, would most likely not have paid his quarterlies, and is waiting for April 14th to file his extension anyways.


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## Double-A (Jul 3, 2006)

I think if you look at what the IRS says to folks that don't have their 1099-misc yet its something to the effect of, "Make every effort to get one from the company that should send one to you. If all else fails, estimate you earnings from them and ....."

In other words. You have to really screw the pooch by waiting much longer than you have to get in real trouble.

BTW. I've called the 1099 police and they are about to come knocking on your door. Right behind them is a mob of angry CPAs ready to tear you apart and lynch your "CPA in a box" tax software.

Unfortunately, the Shriners thought all this activity was a circus coming to town, so they are out in their hats and little cars. I understand 3 people and one cat have been seriously injured so far...

All because you didn't mail out your 1099's on time. 

I think your do-do just got deeper.


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## wizendwizard (Nov 11, 2007)

:hang:


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## a1propertyclean (Dec 16, 2007)

Floordude said:


> Exactly! You don't send 1099's into the IRS like W-2's, when you file. If they are running legit, they should even need the 1099.
> 
> I go by my deposits, and paper trail. My 1099's never add to what I deposit.


You're right. You shouldn't need a 1099 unless you don't keep track of your income.

Tip: If you date your deposits the same day as the date on the customer or client's check, you'll always match the 1099 forms you receive. Everyone issues their 1099 from money paid out between 1/1/ and 12/31 so it's hard to verify what they send you when you use deposit dates.

Linda


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## Angus (Jul 12, 2007)

Floordude said:


> Exactly! You don't send 1099's into the IRS like W-2's, when you file. If they are running legit, they should even need the 1099.
> 
> I go by my deposits, and paper trail. My 1099's never add to what I deposit.


 
Really?

From the IRS:

Both of these forms are called information returns. The Form W-2 is used by employers to report wages, tips and other compensation paid to an employee. The form also reports the employee's income tax and Social Security taxes withheld and any advanced earned income credit payments. The Form W-2 is provided by the employer to the employee and the Social Security Administration. A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee. The form is required among other things, when payments of $10 or more in gross royalties or $600 or more in rents or compensation are paid. *The form is provided by the payer to the IRS and the person or business that received the payment.* 

http://www.irs.ustreas.gov/faqs/faq12-2.html

Questions like these are better left to your CPA or the IRS. Not a contractor website. Looks like some people need to get legit themselves.


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## ApgarNJ (Apr 16, 2006)

the most important one to send out is the ones to the feds, (copies of the ones you should have sent to the contractors). 
i wouldn't worry . they should be keeping track of their income with quickbooks or another system, they shouldn't need your 1099 to do their income tax return. I haven't even done my business/personal tax return yet. I am cringing because every single year I owe and never know exactly what it's going to be. last year was a lot. this year, i hope it's not. i made sure to bump up my quarterly payments and so i think i'm ok.

good luck and dont' sweat it.


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## Floordude (Aug 30, 2007)

Angus said:


> Really?
> 
> From the IRS:
> 
> ...


Angus, what are you trying to spin now, just to one up a statement. Did you mistakenly take the statement out of context???

If your running legit as a contractor, it should not phase you if someone sent you a 1099 or not. Angus, I got to fart, can you pull your nose out real quick?


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## Angus (Jul 12, 2007)

Floordude said:


> Angus, what are you trying to spin now, just to one up a statement. Did you mistakenly take the statement out of context???
> 
> If your running legit as a contractor, it should not phase you if someone sent you a 1099 or not. Angus, I got to fart, can you pull your nose out real quick?


 
*That was cut and pasted from the IRS website. Spin? Please. That is why I put the link to the website. Stop telling everyone else to get legit, when you are not. Stick to what you know..umm.. err..What is that again?*


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## Floordude (Aug 30, 2007)

Running legit?? Pot/kettle/black, syndrome.

OK, so you took it out of context on purpose! I see, you just want someone to fight with. I'm game!


The statement I said, quoted below, is from the workers perspective. Not the payer. Of coarse the Payer, must send in his 1099 information on the payees.

""*You don't send 1099's into the IRS like W-2's*""


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## GoodPainter (Apr 23, 2006)

Not picking anyones side

But....

Yeah the reciever of the 1099 records the income to the IRS in a 
lump some along with all his other recieved income. And is just a matter of trust and honesty, never having to send in the 1099 to the IRS.

Now, the payer does send in the 1099 and a 1096(which is just a totaling sheet)to the IRS so they can do the math.

----Of course, anyone taking on risks with the IRS should consult a CPA or something if they have serious consequences for not doing something right!

I am sole-proprietor and last year cost me $85 this year $100 to get my filing done. I have two kids so im still getting a refund,
yahooooo! BUT after having to spend sh*tloads of time on a tax return--huh I will leave it 
up to some one whose job it is to get me back what I need the most MONEY!


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## Angus (Jul 12, 2007)

Floordude said:


> Running legit?? Pot/kettle/black, syndrome.
> 
> OK, so you took it out of context on purpose! I see, you just want someone to fight with. I'm game!
> 
> ...


 
Forgot how to read? It says "*The form is provided by the payer to the IRS and the person or business that received the payment.* " BY THE PAYER TO THE IRS. 
Pot, kettle, black? The only thing true about that statement, is you must be smoking pot.


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## Floordude (Aug 30, 2007)

Angus said:


> Forgot how to read? It says "*The form is provided by the payer to the IRS and the person or business that received the payment.* " BY THE PAYER TO THE IRS.
> Pot, kettle, black? The only thing true about that statement, is you must be smoking pot.


You forgot how to comprehend a reply to the topic. Taken totally out context, to brown nose my every post. You must be token down in a smog, for little `ol me to get under your skin so easy. I told you I would become your worst nightmare. These posts kinda prove it.:laughing::laughing::laughing::laughing:

You have been POWNED!!


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## Double-A (Jul 3, 2006)

Thread closed.

This personal oneupsmanship is out of line.


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