Thursday, June 02, 2005
IRS Form 1099
Have you noticed that there is a #1099 form for everything....
Div for dividends, Int for interest, R for retirement income
and MISC for an independent contractor, plus many others...
One thing about the #1099 is that the recipient is responsible
for paying the taxes on the amount denoted...Most of us have
filed our taxes with the Div, Int and R recorded....However
the MISC is becoming misused...
A lot of small business owners have found it easier to pay
people on a #1099-Misc thus avoiding all the W-2 filings,
Medicare, income tax and FICA withholding paperwork and
governmental scrutiny....
The big question is how many people are paying the taxes
due on the #1099 amount?....Does the IRS match up every
filing?....And, if not, how much money in tax revenue is the
US losing each year?....Pumps
Div for dividends, Int for interest, R for retirement income
and MISC for an independent contractor, plus many others...
One thing about the #1099 is that the recipient is responsible
for paying the taxes on the amount denoted...Most of us have
filed our taxes with the Div, Int and R recorded....However
the MISC is becoming misused...
A lot of small business owners have found it easier to pay
people on a #1099-Misc thus avoiding all the W-2 filings,
Medicare, income tax and FICA withholding paperwork and
governmental scrutiny....
The big question is how many people are paying the taxes
due on the #1099 amount?....Does the IRS match up every
filing?....And, if not, how much money in tax revenue is the
US losing each year?....Pumps