View Full Version : Writing Off Payment To AWOL Worker
Ohio_Remodeler
Sep 23, 2007, 05:50 PM
I hired a gentleman to do some construction work, paid him $500 cash in 3 payments, he did most of the work and I can not get in touch with him (his phone # is deactivated). I only have his first name and he did not give me a receipt. How can I write this off on my taxes? I do have receipts for construction materials I paid for that he installed.
KBC
Sep 23, 2007, 09:37 PM
Truthfully,write it off just like you have the receipt,if the IRS questions it all they can do is take it off as a deduction.
Ohio_Remodeler
Sep 24, 2007, 02:21 PM
In the future, what would I need to get from an independent contractor to prove I paid them? Just a simple receipt? Do I need their full name and SSN on it?
KBC
Sep 24, 2007, 06:31 PM
Not necessarily,a paycheck(personal or business) is all you'd need,with their signature cashing it you have proof of your end of the agreement(labor,etc)
Ohio_Remodeler
Sep 25, 2007, 07:47 AM
What documentation do I need if I'm paying them cash?
KBC
Sep 25, 2007, 09:07 AM
Either you don't write it off,or contact an accountant to find cash issues and independent workers.
AtlantaTaxExpert
Sep 25, 2007, 10:42 AM
Have the contractor issue you a dated receipt with his name and address on it.