1099 Form Question

1099 a full time employee sounds fishy.

You need to sit down with you tax guy and check the legality of it and what your tax burden will be and if you can itemize your deductions.

 

If you read what I posted, you will see that it states that this is not allowed.

Just because you did it does not make it legal. It is the same with companies running drivers illegally on their hours. Just because they did it, did not make it right.

The rules for the Common Law basically make it that way.

As far as being a contractor and self employed, there is no proper way to report this under the IRS regulations. I know that some preparers will show you as a schedule C, but this is not the right way.

If you believe it to be true, please post the rules from the IRS that support this.

 

When you file a 1099 with the company you work for, that company reports money you earned to the IRS. You than will receive, at tax time a w2 form of your income from the company(s) you worked for. You then must report that income, tax deductions, and expenses, After you figure all the costs, you will come to a amount you will owe the IRS in FICA and SS. When you have your own business that’s what you do.

 

Show me the proof of this being legal.

I have shown you the way and the rules.

By the way, I am a professional tax preparer. Enrolled Agent to Practice Before the IRS since 1986.

I am well aware of the forms.

Read the Common Law Rules

 

Get over yourself, my word. If your a tax preparer then why are you asking if it's legel, you dont know??? I'm just a common idiot, how would I know. I just know what I did.

 

You are the one with the problem.

After I posted the rules showing it was not legal, you said it was legal to do.

All I asked you to do is provide the proof that supports your claim, not your opinion.

You should be aware of the rules before you give advice.

 

Get over yourself. BYE

 

I do not have a problem with myself.


I have a problem with bad advice.

 

If it is illegal to pay or be paid on a 1099, then show the penalties for breaking the law.

 

I have told them to you in the past.

You claim it is not an issue where you live.

I have posted the rules. It is like running illegal on the logs. You can get away with it till you are caught.

Penalties for this is the treatment by the IRS of declaring all of the payments made by 1099 as employee wages. Then assessing the withholding tax for these payments and dunning you for them. These are now late and subject to 20% penalty for accuracy and then another 10% for late payment. All is subject to interest for late payment. So, you have the additional withholding, all of the penalties and it can add up to be a substantial figure. You pay by 1099, do a calculation for yourself and see if this is something to be not worried about.

Does this happen?
Yes, it does.

During my recent audit, the auditor wanted to change my status from leased driver to employee of the company. I own the truck, I had a valid lease, I work where I want, go where I want, dispatch has no control of making me work.

She stated it was their priority now.