Harlan Lunsford <hnslunsf...[at]bellsouth.net> wrote:
- quote -

As I stated in my initial post, the taxpayer "could" have
been considered a self-employed painter and a 1099 would
have been appropriate. However, the facts made it very clear
that was not the case. Try walking these facts through form
SS-8 and see how far you get.

I could envision the employee being asked to perform other
"chores" to quote the poster, such as counting inventory at
year end or helping move the employer from one office to
another. So under your theory, the employer would issue a
1099 for those discreet tasks and the employee would file a
Schedule C for each, showing the type business as "Inventory
Counter" and "Office Mover".

I respectfully disagree.

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frank1492 wrote:

- quote -

Employer handled everything properly (apologies to Mike
Wellman). An mainline employee, 40 hours a week, regular
paid guy, gets a W2 for his "day job". But he could be a
self employed painter for anybody, including his regular
employer.

Use a schedule c. principal business is "construction -
painting", and name of business is "self", and address is
home address.

If employer didn't furnish all the supplies, don't forget to
deduct any of those on the schedule c.

ChEAr$,
Harlan Lunsford, EA n LA

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frank1492 <frank1...[at]verizon.net> wrote:

- quote -

The general rule is that if you are an employee, all
compensation should be reported on a W-2, with appropriate
withholding. An arguement could be made to the contrary if
you had a side business that did painting for other
customers and held yourself out to the public in that
regard. In my opinion, the 1099 needs to be rescinded and
the W-2 corrected.

In case that does not happen and/or you do not want to press
the issue, you would report the income on a Schedule C --
and take appropriate deductions.

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The IRS info is very confusing on this point. This person
received compensation of about $3000 for office painting
(not a part of his regular job) at the business at which he
was employed. The employer reported this on a 1099-Misc Form
as "non-employee compensation."

Does this properly belong on Schedule C? (The IRS seems to
suggest that it should be even though he is not technically
self-employed and does not seem to operate a "sole
proprietorship.")I have no idea what to include, and what is
the "principal business?" The office girl says to put the
name of the business there and then put the person's home
address in the address area. That doesn't seem right at all!

I would not expect this activity to recur, but other
"chores" for pay are possible sporadically over time at the
company.

Please explain what lines should be included. I expect most
of Schedule C would be left blank.

Very confusing!
Thank you!
Frank

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