Howard <h_berg[at]havsi.com> wrote:
- quote -

Reconciling Schedule C with 1099s sent is not necessarily
easy. In addition to those under the minimum amount, there
may be other reasons for not sending 1099s. The contractors
may be corporations or they could be foreign persons or
entities, who don't receive 1099s.

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

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Howard wrote:
- quote -

That so called 'contract labor line is IRS's attempt to try
to force 1099 reporting; not that that's bad of course. But
no, they could never match it up because it's just for
labor, and as we know 1099's are issued for other
situations, e.g. rent, and to individuals furnishing both
materials and labor. Some 1099's may be issued to
repairmen, in which case the expense is included in that
category.

Also 1099's are issued to contractors whose services may be
properly attributable to Cost of Goods sold on page 2.

No size fits all I guess.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

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

- quote -

Schedule C, line 11 is where contractor expenses are
entered. Shouldn't the amount entered be the sum of the
amounts reported on forms 1099-MISC except for those
contractors who don't meet the minimum ($600 I think)? I
would think that it would be easy for the IRS to reconcile
line 11 with amounts reported on forms 1099-misc and flag
those with a large discrepancy. Perhaps I don't understand
the situation with the forgotten 1099.

Howard

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

kalpanaali[at]yahoo.com wrote:

- quote -

Yes, there is a penalty for late filing of 1099's. Up until
THIS year, this really wasn't a problem. Ive never heard of
penalties being assessed before year 2005. However since
then I've heard of a couple of cases where IRS is taking a
hard line.

I know how this may sound, and I'm not advising either way
(!!) but if you don't file even now, how will they miss it?
There's no cross check with the payee anyway. So only in
case of audit of your business return (since 1099's aren't
used with personal transactions) would IRS have a chance to
notice. And even then, ....... (grin)

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

kalpanaali[at]yahoo.com wrote:

- quote -

I think the penalty will total $100, but under the burden of
proof rules, they can propose (in a mere notice) only the
$50 portion of that for late filing. So, I doubt they
bother on only one late 1099. You're in no different
position from the thousands of people in business who don't
know they have file an isolated 1099 or two. Are you sure
you read the 1099 rules correctly? ;-)

Fred F.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Urgent....forgot to send 1099
************************************

I have a situation where I forgot to send a 1099 to the IRS
for 2005 for some services rendered by an individual.

Doing 2005 taxes now with an Oct 15 extension.

What can I do?

Are there any penalties attached to sending the IRS a late
1099? late fees? penalties?

Pls let me know .....URGENTLY.

Thanks in advance for your help.

Best,
Kalpana

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >