1099 question and filing taxes without the 1099?

Notify the irs

 

You set up as and LLC-Scorp, S-Corp, C-Corp, or a sole proprietor?

If you are a single member LLC treated as a sole propietor or a sole proprietor, they required to send you a 1099-Misc.

If you are an LLC treated as a S-Corp or C-Corp, are a S-Corp or C-Corp they DO NOT need to issue you a 1099-Misc for the income you earned there.

 

You use an estimate of it on your return, use his name and all contact info just like any other 1099.

You also need to create a document of the facts about it, include your settlements and estimations even if you didn't get paid and have that notarized as a legal document.

If you get audited because of it, then that is part of the evidence of you being paid and want to pay your proper taxes in good faith.

Also another important thing, never ever work for anyone you are related to.

 

Technically you don't need to receive a 1099 before filing taxes. If that was the case many wouldn't file and blame the carrier for not sending the 1099. Like other's have said, give a good faith effort to reproduce loss and profits. Remember your brother won't be hit with the fines, you will. If and only if your brother was required to send you a 1099 the fine to him is minimal. You must have record of what you spend on the business, and on the income there must be deposit to the bank on your behalf. Did he pay you with checks?, ach?, hopefully not cash. There must be a record somewhere .IRS is not easily fooled in a audit, I'm sure they have heard it all.

 

I Wish I could hit "Thank" to this 100 times because of how true it is!

@Ridgeline thank you so much for all of your advice you give on this forum!

 

Was you working for cash or check?

 

Did you deposit the checks into your checking account or cash them? If you deposited them, you should be able to take a look at your bank records and get the amount.

If you have no records and your BIL won’t provide any, about all you can do is make a honest estimate. Wouldn’t hurt to figure a little on the high side.