johnstacco[at]yahoo.com wrote:
- quote -

Partially wrong about this.

One may go ahead and file a return as if they are an
employee, pay the SS tax with form 4137 and include a copy
of the SS8 form with the return. Also must formally submit
the SS8 to IRS for determination.

IOW, no need to wait.

ChEAr$,
Harlan Lunsford, EA n LA

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shedges[at]bloomington.com wrote:

- quote -

Completion and submission of Form SS-8, in concert with the
above, may initiate an IRS investigation of the employer.

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shed...[at]bloomington.com wrote:

- quote -

Thank you for your insightful analysis Steve!

So I did a little follow-up research, it looks like I am
indeed misclassified. However, I discovered IRS form SS-8
"Determination of Worker Status for Purposes of Federal
Employment Taxes and Income Tax Withholding", and it seems
like you can't simply "reclassify" yourself but need to file
form SS-8 first, then wait for their ruling.

Or am I wrong about this?

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"Benjamin Yazersky CPA" <john...[at]nowhere.com> wrote:

- quote -

Thanks, but I thought it's January 31, according to IRS at
this link
http://www.irs.gov/newsroom/article/...106530,00.html

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You do not need the EIN, as the 1099MISC is not attached to
your 1040 unless there was Fed Inc Tax Withholding-which is
very rare in my experience. You just report the income,
probably on line 7 of the Form 1040. If you are a
misclassified worker (you were really an employee of their's
not an independent contractor, you report the income on the
Tip Income Form 4137 and just pay your half of the Soc Sec
Tax-which the 4137 does for you. You do not file Sch C, as
this transfers to Form SE which computes double the Soc Sec
Tax. This Form 4137 filing is allowed under Rev Proc 85-18.
A "misclassified worker" is someone who is not "holding
themselves out to the public as being in the business of
performing the services rendered", which is usually
indicated by just having 1 Form 1099MISC.

If you had little or no significant investment in tools of
the trade, except small hand tools, and you had no
significant investment in advertising, letterhead, bus
phone, insurance, and they supplied most everything, such as
supplies, materials, desk, lighting, heat, etc., or they
paid you by the hour or were able to tell you when to be at
work, what to do at work, in which order to do the work, or
could fire you ... you were probably an EMPLOYEE.

If you had no way of loosing money without this work, you're
probably an employee. Sure, you may not make any money
without them ... but would you LOOSE money, such as paying
for insurance, office rent, etc? If you were, in-fact an
employee and were misclassified as an independent
contractor, Sec 530 of the 1976 tax act and Rev. Proc. 85-18
say that you are an employee even if your employer
misclassified you, and thus only required to pay your half
of the Soc Sec tax. This is done on Form 4137. Near the top
of the page, in the blank lines below your name and SSN, you
enter "FILED UNDER REV. PROC. 85-18" on the next line enter
"SEC 530-WORKERS INCOME RECLASSIFIED AS WAGES". On the third
line, you enter the employer's name. The Form 4137
automatically only computes your half of the Soc Tax. The
IRS never seems to investigate the employer for the
misclassification, as they seem to have no way of capturing
the information provided. Additionally, Sec 530 allows
certain employers to legally misclassify workers in the
trucking, construction, hair/ barber/beautician and other
industries and under other limited situations. Ironically,
one of the conditions allowing the employer to legally
misclassify, is that they issue 1099MISC's to those earning
over $600. OOPS. Not your problem...you just pay your half
of the Soc Sec Tax (and of course the income tax, Fed and
State). TaxCut should handle this on the 1099MISC input
sheet, where you tell it to apply the 1099MISC amount to
Form 4137. It'll do the rest, except you'll manually enter
the 3 lines of info memtioned above. If the program won't do
it automatically, just go to Form 4137 and enter the
1099MISC amount on Line 1, then enter and the 3 lines of
info memtioned above. As a check number, line 12 should be
7.65% of Line 1, the 1099MISC amount. The Line 12 amount
flows to line 59, Form 1040 and the 1099MISC, Box 7 amount
goes to Form 1040, Line 7, and increases any amount already
there.

Confused? Don't feel bad, most tax preparers don't even know
how to handle this one correctly.

STEVE
Tax Lawyer.

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Thank you all for answering my question!

I understand that I must report this income regardless of
1099 being issued to me, but isn't the employer required by
law to issue a 1099 if the amount is over $600?

Thanks again!

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<johnstacco[at]yahoo.com> wrote:

- quote -

The 1099 is their responsibility, not yours. Report the
income on line 1 of Schedule C-EZ and be done with it.
(Your software will fill in Schedule SE for you.)

--
Phil Marti
Clarksburg, MD

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<johnstacco[at]yahoo.com> wrote:

- quote -

1099's are due Feb 28th

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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johnstacco[at]yahoo.com posted:

- quote -

You should report the income, whether you receive a 1099 or
not. Since 1099-Misc income is reported on Schedule C, or
C-EZ (with little expense amounts), the 1099 isn't essential
for reporting. You simply total all of your "self
employment" income (assuming you may have had other
temporary assignments).

Bill

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johnsta...[at]yahoo.com wrote:

- quote -

You do not need their federal ID and do not need a 1099
unless they withheld tax (unlikely). Just report the income
on Schedule C and deduction any related expenses.

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Hi all,

I worked at a temp job in 2006, made $950. When the job
started, employer told me the income would be reported as
1099.

I understand their 1099 filing deadline is Jan 31, but I
have yet to receive my copy. This company is very small,
and I'm guessing their accounting work is a bit
unorganized. I'm planning to visit them next week and ask
about it.

My question is: besides verifying the amount of 1099 that
they will report to IRS (if they do report at all), should
I obtain their Fed. Tax ID Number? Never dealt with
"non-employee compensation" before, is there anything else I
should be watching out for?

(I'll be using TaxCut, if it makes any difference).

Thank you all and good night!