| I'm not a tax expert. But, I am a self-employed person - an independant contractor. Have been self-employed as well as employed by others for most of my life. But, most of the time it has been by self-employment.
Most of the work that I do is in other people's homes. They either write me a check, or sometimes pay me cash. Either way, if the IRS really wanted to do a check on me, they would be looking into all of my bank accounts.
When I receive a check, I make a photo-copy of it. When I receive cash for payments, (some people just don't like to write checks), I write the customer a receipt. Those are my proofs of what I have made. I also use Quicken to keep track of everything.
My attorney is a tax attorney. Thus, he does my taxes for me. To date, over the many years that a good portion of my income has been through self-employment, no one who would know anything has ever raised an issue with my accounting methods. It could be the same in your case, if you are meticulously keeping track of everything.
I suppose there might be an issue if I was making really big bucks. But, I don't really know. I don't make really big bucks.
Hopefully, someone will come along who is really knowledgeable about withholding and tax issues. |