Dear sir,
I have another friend(rajesh) of mine who came to USA before 2 yrs on H1B visa,
H1B cannot receive 1099,he worked for his friend(Amit) and got around $15,000/--
For helping him on his project.his friend(Amit) to avoid taxes issued 1099 misc form,
But wituout social security # and correct address(his(Amit) own address).
Is this going to be problem for my friend rajesh because legally he cannot pay tax to the IRS on 1099.
Does IRS accept 1099 from payers without SS# and correct address.

Please advice

Thanking you

Dipak

Dipak:

I am not aware of any restriction that someone on a H1B visa cannot earn money under Form 1099-MISC. Can you cite the specific law/regulation that details this restriction?

Employment via subcontracting is quickly becoming the preferred method of employment in this country, especially in the computer field. I have done several returns for clients on H-1B visa who have earned money under Form 1099-MISC, and have never had a problem. That would be the same as prohibiting someone for working under a W-2, which defeats the purpose of the H-1B visa to begin with.

Your friend has a legal obligation to report the $15,000 he earned to the IRS under Schedule C as self-employment income. If he fails to do so and the IRS determines he did so willfully, they will hit him with back taxes, penalties and interest that could triple the eventual taxes due.

Additionally, it could result in his visa being revoked.

Strongly recommend your friend file his tax return as soon as possible. He is already late and will pay late filing fees. The longer he waits, the higher the fees.

Dear Sir,
Thank you very much for reply,My friend is proceedind for paying the tax,
Now question is can someone give 1099 without SSN and address?

Thanking you

Dipak

Dipak:

Technically, no! Such a Form 1099-MISC should be rejected by the IRS as incomplete.

However, that does not affect your friend's situation. If his name, address and SSN is on the Form 1099-MISC, the IRS will expect the money to be accounted for on his tax return.