Scorcher Posted February 2, 2012 Share Posted February 2, 2012 Our limo service took a group to a football game for the day. The guy wrote a check off of his business acc't. His accountant called for our tax ID no. so she could send us a 1099. I told her we were not paid for doing a job for his company. I asked her if she sent a 1099 to every restaurant he paid with a company check. She said no because it was food , but because we are a service she wants to send us a 1099? Does this sound right? Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted February 2, 2012 Share Posted February 2, 2012 Our limo service took a group to a football game for the day. The guy wrote a check off of his business acc't. His accountant called for our tax ID no. so she could send us a 1099. I told her we were not paid for doing a job for his company. I asked her if she sent a 1099 to every restaurant he paid with a company check. She said no because it was food , but because we are a service she wants to send us a 1099? Does this sound right? What is your company structure? If you are not a corp, odds are he is correct and by law must send you a 1099. you can send a 1099 to every vendor you pay if you'd like to cover your ass. I'm not following you though, you received a check but you said you didn't perform a job? Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 What is your company structure? If you are not a corp, odds are he is correct and by law must send you a 1099. you can send a 1099 to every vendor you pay if you'd like to cover your ass. I'm not following you though, you received a check but you said you didn't perform a job? The guy owns a body shop. What I meant was we didn't do anything related to his product. We took him out for a day that was his personal pleasure. Quote Link to comment Share on other sites More sharing options...
Furd Posted February 2, 2012 Share Posted February 2, 2012 Why do you care? Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 2, 2012 Share Posted February 2, 2012 (edited) Why do you care? Because he wants to avoid paying taxes on the income he got from the job. duh (Edit: In much the same way that the business owner wants to claim the limo ride as a business expense so that he can deduct it from his taxes.) Edited February 2, 2012 by wiegie Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted February 2, 2012 Share Posted February 2, 2012 Maybe I'm retarded but I have no idea what you mean. Who paid for the service? Who received the check? Quote Link to comment Share on other sites More sharing options...
muck Posted February 2, 2012 Share Posted February 2, 2012 If you were planning on paying income tax on that revenue, then give 'em your information. You don't know if the guys that were taken out were customers, employees, investors, etc., do you? Quote Link to comment Share on other sites More sharing options...
Furd Posted February 2, 2012 Share Posted February 2, 2012 (edited) Because he wants to avoid paying taxes on the income he got from the job. duh Income is income, isn't it? Doesn't the limo company have to report it no matter who/what paid for the services? Edited February 2, 2012 by Furd Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 Maybe I'm retarded but I have no idea what you mean. Who paid for the service? Who received the check? The guy who owns the body shop paid the limo company with one of his company checks for a personal service that was not related in anyway to what his company does. We send 1099's to our drivers because they drive for us and perform services related to our business. Why is he sending a form that would show us liable for income tax? Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 2, 2012 Share Posted February 2, 2012 Income is income, isn't it? Doesn't the company have to report it no matter who/what paid it? yes and yes. I was just giving the only reason I could think of for why he didn't want the other company to submit a 1099. (I wasn't saying that what he was doing was the right thing to do.) And before all of you ninnies freak out that I called Scorcher a tax evader, please note my use of the icon in my initial post in this thread. Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 2, 2012 Share Posted February 2, 2012 The guy who owns the body shop paid the limo company with one of his company checks for a personal service that was not related in anyway to what his company does. We send 1099's to our drivers because they drive for us and perform services related to our business. Why is he sending a form that would show us liable for income tax? because you ARE liable for income tax Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 Income is income, isn't it? Doesn't the limo company have to report it no matter who/what paid for the services? Yes we report the income.I am thinking if we did body work as an outsourced job then we should get a 1099. A day of personal recreation does not require a 1099, am I wrong? Also with a 1099 wouldn't we have to pay more taxes above what we have already paid for income shown? Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 2, 2012 Share Posted February 2, 2012 A day of personal recreation does not require a 1099, am I wrong? no, it does not the body shop owner is a tax cheat Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 2, 2012 Share Posted February 2, 2012 Also, for the record, I have no idea how tax law works, so everything I have written in this thread could be (and likely is) completely wrong. (I just wanted to see what it felt like to be Ice1) Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 (edited) yes and yes. I was just giving the only reason I could think of for why he didn't want the other company to submit a 1099. (I wasn't saying that what he was doing was the right thing to do.) And before all of you ninnies freak out that I called Scorcher a tax evader, please note my use of the icon in my initial post in this thread. I always pay my full tax and when I pay wine debts I send full bottles! Edited February 2, 2012 by Scorcher Quote Link to comment Share on other sites More sharing options...
Square Posted February 2, 2012 Share Posted February 2, 2012 Also, for the record, I have no idea how tax law works, so everything I have written in this thread could be (and likely is) completely wrong. (I just wanted to see what it felt like to be Ice1) Wiegie is rolling. Quote Link to comment Share on other sites More sharing options...
bpwallace49 Posted February 2, 2012 Share Posted February 2, 2012 Also, for the record, I have no idea how tax law works, so everything I have written in this thread could be (and likely is) completely wrong. (I just wanted to see what it felt like to be Ice1) Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 I posted this while waiting for accountant to call me back. The responses have been interesting. I just wondered if anyone has had this happen before? Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 This has been hard to explain, but I think I have it. If there was never any possibility of having to pay any payroll or ss taxes for my services, why would he sen a 1099? Quote Link to comment Share on other sites More sharing options...
muck Posted February 2, 2012 Share Posted February 2, 2012 You don't know if the guys that were taken out were customers, employees, investors, etc., do you? Well? Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 Well? I don't know. Would it make a difference on the limo income? Quote Link to comment Share on other sites More sharing options...
Furd Posted February 2, 2012 Share Posted February 2, 2012 This has been hard to explain, but I think I have it. If there was never any possibility of having to pay any payroll or ss taxes for my services, why would he sen a 1099? But why is that your business? I suppose that if you knew without question that he had no legitimate claim that this was a business expense and you knew that his company reported it to the IRS as such, you could report your suspicions of fraud to the IRS. I hope that you have better things to do. Quote Link to comment Share on other sites More sharing options...
SNOWBOUND33 Posted February 2, 2012 Share Posted February 2, 2012 He didn't hire you as an employee or sub-contractor, right? Does he send a cab driver a 1099 after a night out of drinking. No. He should not be sending you a 1099. He is a scammer. Be careful though. If you do get a 1099, get it cleared up because I blew one off (from an a-hole insurance salesman) because he had no right to send me one and a couple years later I got audited and found out that was the trigger. You don't want to mess with the IRS over a small amount and open a can of worms believe me. It took almost 18 months to settle because anytime we would submit requested information it took up to 3 months to hear back from them. In the meantime you are accruing penalties and interest on anything you owe so they draaaaaaaag their feet. Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 2, 2012 Share Posted February 2, 2012 But why is that your business? I suppose that if you knew without question that he had no legitimate claim that this was a business expense and you knew that his company reported it to the IRS as such, you could report your suspicions of fraud to the IRS. I hope that you have better things to do. All that it takes for evil to prevail is for good men to do nothing. Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 2, 2012 Author Share Posted February 2, 2012 But why is that your business? I suppose that if you knew without question that he had no legitimate claim that this was a business expense and you knew that his company reported it to the IRS as such, you could report your suspicions of fraud to the IRS. I hope that you have better things to do. My only concern is that I would not have to pay anything extra as a result of receiving a 1099. No one has ever sent wanted to send me one, so I wondered if it was a common practice that's all. Yes I do have better things to do. I noticed that a neighborhood kid put a car wash flyer in my mailbox, so I am going to report that to the post office. Quote Link to comment Share on other sites More sharing options...
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