Employer Won't Send Client Her 1099-misc

[BOB W]

I am wondering if there was even supposed to be a 1099 issued or if the so called "employer" just provided a place for her to work in order to increase traffic flow into the shop. If she collected the fees directly from the clients, was the shop owner even in the equation?
Did she have to pay for renting the space?

Around here, there are many of these and they are just like beauty operators that have a station in someplace where several others work. But they are not sub-contractors being paid by the building owner. Each is on their own.

LT

Excellent point> she rents space or some other arraingement.... and she needs to maintain her own records.

[thomtax]

I am wondering if there was even supposed to be a 1099 issued or if the so called "employer" just provided a place for her to work in order to increase traffic flow into the shop. If she collected the fees directly from the clients, was the shop owner even in the equation?
Did she have to pay for renting the space?

Around here, there are many of these and they are just like beauty operators that have a station in someplace where several others work. But they are not sub-contractors being paid by the building owner. Each is on their own.

LT

[taxmom34]

I have never had a massage, but, don't they wash their hands(soap)?, use lotions, hot rocks, cucumbers, mayonnaise? (not just for salads, lol) towels, i'm just listing things i've seen on TV or movies, maybe some of you guys who have experienced a massage will enlighten .

[mwarney]

This woman needs help. Your job is to complete the necessary forms to correctly report her income to the government. You can't do that if she doesn't know how much she made. Her most basic responsibility to you, and as a citizen, is to know how much money she earns. That being said, there IS a law requiring businesses to file a 1099 whenever they pay $600 or more to a non-corporate subcontractor.

[FEDUKE404]

Tick tick tick

This client sounds like a ticking time bomb.

The "employer" has not provided a Form 1099-MISC? (We will assume she made more than $600 during the year.)

The client has no idea of income? (A reasonable person would assume she probably has no idea of any related expenses either.)

Toss in EITC considerations, and the ticking gets much louder.

I would either have the client sign off on everything she "finds" for you or more likely would just suggest she visit a store-front operation more accustomed to such lapses of memory and/or lack of records. Bob W reached the same conclusion.

FE

[taxea]

My Client Is A Single Mother Who Would Qualify For Eic And Definetly Needs The Money But She Does Not Seem To Be Able To Get A 1099 From Her Employer. What Can She Do?

If she is self employed then the person she did the work for is not her employer. If the person is a business that she contracted with he/she and is required to provide a 1099 have your client provide the person with a copy of the law. If the person is not a business for which she contracted...they are not required to provide a 1099.

[Lion]

Records

If she didn't treat her work as a business, keep good books and records, maybe it's really a hobby. That's what the IRS could say. No earned income = no EIC. Did you prepare her 2008 return? Do you want to prepare her 2009 return?

[BHoffman]

Can you refer her to VITA? They are specially trained by the IRS to deal with EIC returns and are not subject to the Cir 230 requirements (or penalties).

[JohnH]

I'd give her a worksheet and make sure she signs off on every item of income and expense that she lists. I'd probably also ask for copies of her bank statements to confirm some of the info in general terms. Of course, if there's much EIC involved, I'd probably hand it all back to her with an apology and say I can't complete the return based on the info she provided. At least she will be better prepared when she goes to HRB or JH.

[BOB W]

The burden is on her to report the income, not you. All you can tell her is to review her banks statements for deposits and to get back to you when she has a number. If YOU chose, have her bring her bank statements to you. If she doesn't have them, she needs to order them from the bank.

Since this is an EIC return, without some proof of income I would not complete the return.

[belle22]

Sorry I Used The Term Employer. Her Only Expense Was Uniforms. She Is Going To Try To Use Bank Statements To Come Up With A Total.

[belle22]

Her Only Expense Is Uniforms. Sorry I Used The Term Employer.

[RitaB]

Iceberg and Lettuce

Belle, you are only dealing with a small part of the big picture. Because if she can't keep records well enough to know what her income was, then how is she going to have enough records to tell her what her deductions are, and God forbid she ever get audited and then must substantiate her expenses.

Yeah, and how does she know she qualifies for EIC, if she has "no idea" what her lettuce was?

Edit: Wow, a massage would be so great right now.

[Snaggletooth]

Tip of the IceBerg

She Is A Terrible Record Keeper And Has No Idea What Her Income Was.

Belle, you are only dealing with a small part of the big picture. Because if she can't keep records well enough to know what her income was, then how is she going to have enough records to tell her what her deductions are, and God forbid she ever get audited and then must substantiate her expenses.

[taxdude71]

Did she deposit her checks in the bank or just cash them? If she deposited them, go off of the bank statements.

If not, good luck. Maybe you can get the employeer to talk to you.