Discussion:1099 NonCompliance
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Discussion Forum Index --> Tax Questions --> 1099 NonCompliance
Dianeoffutt (talk|edits) said: | 7 September 2008 |
| I want to protect my client and myself from penalties and have researched this noncompliance issue and just need some clarification.
In preparing an LLC (single-member)tax return I asked my client if he complied with 1099 reporting requirements (all service providers over $600 must receive a 1099). My client has 20 such service providers; only three went over the $600;however, my client did NOT comply with the 1099 reporting. He gave no reason, he just did not comply. My question is must I disclose per form 8275 the fact that three of these service providers did not receive a 1099? Or, can I just CLEARLY identify "SERVICE PROVIDERS" as a deduction and have two lines, one for all providers Under the $600, and the three that went over? Another, more IMPORTANT issue to address, this client's flagrant disregard for compliance. Would it make more sense for me to NOT take these three service providers over $600 deductions, thereby letting my client know if he does not comply with IRC then he will not be allowed the deduction (which is what I was about to do then decided to post a question on the forum). Any and all help will be greatly appreciated. | |
