Harlan Lunsford wrote:
- quote -

Why not? Isn't this very similar to union dues? A union is
supposed to represent the employee in obtaining and
retaining a job and to negotiate terms and conditions of
employment. Doesn't an agent do the same?

Lanny Williams, CPA
Nawarat Williams & Co
Income Tax Services for Expatriate Americans

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- quote -

What I'd do is ask the employer to pay the fee and deduct it
from the employee's income. The employer can write off the
whole thing, and the employee won't have to recognize it as
income. Otherwise the employee's deduction may be of
limited use.

Stu

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Harlan Lunsford wrote:
- quote -

[snip]

- quote -

I agree it is atypical. However, your work as an employee
for company A is a trade. Clearly, this payment of 10% of
wages must be for services provided to obtain either the job
or the amount of wages and/or benefits. I believe it meets
the criteria for issuing the 1099-MISC.

--
Alan
http://taxtopics.net

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Harlan Lunsford <lunstax[at]bellsouth.net> wrote:

- quote -

I recently advised a client to send an employee (or rather a
former employee) a 1099. Turned out the employee (a cousin
of the owner) had been embezzling for for at least two
years. When they caught her, they turned her into the
police. I figured that sending her a 1099 for what she
stole was a reasonable thing to do.

Stu

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- quote -

How about a TV News Anchor

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- quote -

He is in the news media.
An agent (headhunter) get him a job with a TV station and
receives 10% of his gross pay for the duration of the
contract.

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A.G. Kalman wrote:
- quote -

Now that's interest, Alan. WE don't usually think of
employees sending 1099's to payees. those with rental
properties, schedule E, need to of course, ... but ....
employees? I dunno.

Cheer$,
Harlan Lunsford, EA n LA

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Hankal <hankal[at]aol.com> wrote:

- quote -

If, by chance, the person is a "performing artist" (actor,
musician, etc.), it might be possible to deduct the expenses
"above the line" on 1040 line 33. See instructions for Form
2106.

MTW

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Harlan Lunsford wrote:

- quote -

Employee-paid executive search firm?

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"Hankal" <hankal[at]aol.com> wrote

- quote -

If he's an employee, it would go to 2106, schedule A.

--
Paul A. Thomas, CPA
taxman at negia.net

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Hankal wrote:

- quote -

This one makes you think, Hank.

If amount is 10% of wages, then sounds like he's an
employee, although I can't for the life of me imagine an
employee having an agent. lol Hmmm. maybe he plays for the
Marlins?

Therefore, it's a 2% item.

Cheer$,
Harlan Lunsford

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Hankal wrote:

- quote -

You have an amount paid to produce taxable income. It is a
Form 1040 Schedule A Line 22 item. As the payment relates to
your trade, I believe you are obligated to send the agent
and the IRS a 1099-MISC if the amount is at least $600.

--
Alan
http://taxtopics.net

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hankal[at]aol.com (Hankal) wrote:

- quote -

What in the world is he paying for? If the agent helps in
some way for him to generate income, and depending on where
his income is from, I might file a Schedule C, give the
agent a 1099 and write off the whole thing.

Stu

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hankal[at]aol.com (Hankal) writes:

- quote -

If the person is an employee, it's a Schedule A employee
business expense. If the person is self-employed, it's a
Schedule C deduction.

Phil Marti
Topeka, KS

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How would you report this?
Person has income and pays 10% of it to an agent.
Report it on Schedule A, subject to 2% of AGI
Report it not subject to AGI
Issue a 1099 Misc. and deduct the amount form income
on line 22.
The amount is 10% of his wages.

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