Quote:
Originally Posted by Sly
File an extension and then get an accountant.
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Quote:
Originally Posted by Barry-xlovecam
You have to estimate your tax liability and make a payment with your extension.
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Anyway, a 1099 is just to let you and the IRS know how much someone has paid you. They're informational.
Make sure your self-reported gross income is the same or more than whatever the 1099s add up to, or you're going to have a problem.
Also, if you have a business, you must 1099 everyone you pay more than $600 to unless you paid by credit card, or you paid a corporation. Even then, it is best just to have a W-9 on file so that you can 1099 everyone.
The IRS can hold you liable for income taxes on whatever you pay other entities if you did not report that payment via 1099.
My policy is your first payment does not go out the door until we have a W-9 for you. Even if we'll only be paying you $100 in a calendar year. Makes it all so much easier.