Ask Experts Questions for FREE Help !
Ask
    cbrennan's Avatar
    cbrennan Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 11, 2008, 06:58 PM
    1099 penalty?
    What is the consequence of not sending a 1099 to an independent contractor? What is the implication? Penalty? There is a person that we paid something to that was an employee but is now no longer. Do we 1099 them like any other vendor?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 11, 2008, 08:00 PM
    If you paid $600 or more to an independent contractor, you must issue 1099-MISC. If you have not done this till now, do it now. Late filing penalty is $50.
    bigchuck's Avatar
    bigchuck Posts: 15, Reputation: 0
    New Member
    		  
    #3

    May 13, 2008, 12:29 PM
    Quote Originally Posted by cbrennan
    What is the consequence of not sending a 1099 to an independent contractor? What is the implication? Penalty? There is a person that we paid something to that was an employee but is now no longer. Do we 1099 them like any other vendor?
    You only need to send a 1099 to someone who is not an employee, who is not incorporated and to whom you paid over $600.00 in year.

    If in doubt there is no harm in sending one... if you are in doubt.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    May 14, 2008, 12:45 PM
    Agreed; if in doubt, send the Form 1099-MISC.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Besides the annuity penalty does the IRS add penalty for removing money [ 1 Answers ]

I am removimg money from my 401k plan & the annuity is assessing me a 8% penalty. Is the IRS going to penalize me as well or is it just categorized as ordinary income?

1099-g & 1099-int [ 1 Answers ]

Hi, I am a citizen of India and filing my taxes as a non-resident for 2006. 1.> I received 1099-G of my 2005 state tax refund. In my 2005 federal tax return I had used the standard deduction on line 11 of 1040NR-EZ i.e "Itemized deductions" line since it is entitled to students from India. Is...

1099-G and 1099-INT, filing as a non-resident [ 1 Answers ]

Hi, I am a citizen of India and filing my taxes as a non-resident for 2006. 1.> I received 1099-G of my 2005 state tax refund. In my 2005 federal tax return I had used the standard deduction on line 11 of 1040NR-EZ i.e "Itemized deductions" line since it is entitled to students from India. Is...

Penalty [ 5 Answers ]

I have a question on behalf my friend: He came to US in 2004 with F1 and work in OPT in tax year 2005. He should have filed 1040NR. However, he carelessly filed 1040 for resident alien and already got tax refund from IRS. In this case, should he file amendment? What will happen if he should...

Penalty [ 1 Answers ]

I was penalise for being on strike that was called by my union.according to the tayalor law,it is 2days pay for every day on strike.is there any way I can reduse my taxable income by the amount of penalty. I believe it is a cost of doing business(work).I don't know if my logic will fly.Or Where...

View more questions Search