[chefBT]

Hi,
I am a personal chef, operating as an LLC. One of my regular and generous clients just surprised me with a "bonus" for a job well done this summer. He presented me with a check for $6500.00 and made it out to my highest interest rate credit card company. So I will be forwarding his check, made out to the credit card company directly to the credit card company. My question is this: Is this amount considered income for income tax purposes?
Thank you,
Brian

[smoothy]

I believe it is and you would have a hard time arguing otherwise if you were audited.

[AtlantaTaxExpert]

It is clearly taxable earned income that must be reported on the tax return for your LLC.

Your client was trying to help you by making the check to your credit card company, which gives you constructive receipt, but leave no audit trail. Irrespective of that, you STILL have to report it on your tax return.

[Fr_Chuck]

Yes, it is. I am sure the client was trying to make it, where you would not have to pay taxes on it. Since it does not go in or out of your bank. But legally yes it is taxable

[ScottGem]

Legally it is. You should be getting it included in your 1099.

[AtlantaTaxExpert]

More than likely, the client has NO intention of generating a Form 1099-MISC for this sum.

[joypulv]

What I would do personally will get me yelled at.
I spent much of my working life doing bits of this here and there. I make no apologies to the IRS or anyone. And of course my SS is lower as a result.

I once helped a friend with her taxes. She owned a building with 3 apartments. For some reason she decided to see what a tax preparer would get, and he took an energy credit deduction for storm windows. I pointed out that the credit was allowed once in a lifetime and that she had already used it 2 or 3 years before. I was told 'Oh that, we ignore that.'

There you have 1 tiny way of all the many ways to beat the IRS. If you aren't privy to them, you might accept a credit card payment.
OH - and I don't see a snowball's chance in hell of it showing up on an audit, if there's no 1099, which there won't be, otherwise why do it.

[AtlantaTaxExpert]

Joy,

You asked for it, so I am yelling.

What you said about it not showing up on an audit is probably valid, but we CANNOT give advice on this forum that is tantamount to breaking the law, which is what the OP would be doing if he did not claim this on his tax return.

[joypulv]

I was trying to avoid advice. Just personal experience. Perhaps I went too far.

[AtlantaTaxExpert]

Yes, I believe so.

Please remember that ANYTHING posted on this forum will be considered advice.