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new accout wants to give me a 1099

Discussion in 'Business Fundamentals' started by mike13, Jan 5, 2015.

  1. mike13

    mike13 Member
    from mass
    Messages: 49

    So this new acct that I quoted as come back an asked if it's ok to give me a w-2 1099. Is this a good idea or not. I never been asked this ever besides by my town which I plow for. Any pros an cons. Please help
     
  2. Herm Witte

    Herm Witte Senior Member
    Messages: 553

    It's a legal requirement if you are a sole proprietor or LOC. Only an issue if you don't report your income.
     
  3. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,974

    Corporations , previously mentioned are not applicable, but if they pay you more than $600 in a calender year, they're required by law to get your ss# or EIN and send one to u and the others to the IRS. If you refuse, and they contact the feds you can be fined, worse yet become their auditors target
    http://www.irs.gov/uac/Form-1099-MISC,-Miscellaneous-Income-
     
  4. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    I don't think they're going to give you a W-2 and a 1099. W-2s are given to employees and 1099s are given to subcontractors. It's very common to receive a 1099 and it's not a big deal. Just include a copy and claim the income on your annual taxes.
     
  5. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,549

    A 1099 is correct. when plowing a business lot.
    you are the contractor.



    Form 1099-MISC, Miscellaneous Income

    File this form for each person to whom you have paid during the year:

    at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
    at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
    any fishing boat proceeds,
    gross proceeds of $600, or more paid to an attorney during the year, or
    withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

    Also, use this form to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
    http://www.irs.gov/uac/Form-1099-MISC,-Miscellaneous-Income
     
  6. fireside

    fireside Senior Member
    Messages: 661

    As of last year you should have provided ALL your contract/ service locations with a W-9 form. They are required to 1099 any service provider no matter how much you earn. Under the old law it was up to the account at what point they provided you with a 1099 form. If you pay any sub contractors they must provide you with a W-9 form than you must 1099 them.
    They sign the contract and I just automatically send the W-9 form you may also need to provide a form of ID also! "American patriot act" so I get paid plus it's much more professional way of doing business.
     
  7. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    It's only an issue if you don't claim the income. They just want to make sure you are responsible for the taxes on that $$$ so they don't have to be.