PTRshp pays tp on a contracted base. Issued to tp a 1099 miscl box 7. In checking futher I find that ptrshp paid and sent to IRS his(tprs) estimated payments without deducting from his contract. I feel this is nothing more than additional pay and should have been included on the 1099. In checking futher with TP I found he gets same amount every week. How can this not be W-2? TP is NOT a partner. Am I off base? Thanks for any imput.
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I Agree
The Estimated Payments Are Additional Payments For Service And Should Be Added To The 1099. I Agree That This Looks Like W-2 Compensation -
1099 reporting is wrong all the way around
If Prtnership is filing 1065 then they are guaranteed payments on K-1, if filing 1120-S then they are wages for W-2 or distributions to shareholder.Comment
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Tp is not a partner of the partnership. Does this make a difference? I can't see how Iwould report since he would not get a K-1 from the partnership. More please.Comment
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Missed that part
Sorry, my badComment
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There are a number of tests for whether someone is an employee or independent contractor, but getting paid the same amount each week isn't one of them. For example, an office might hire an independent contractor at a fixed weekly fee to come in once a week to water and care for the office plants.Originally posted by TAX4US View Post
On the other hand, if the partnership paid estimated taxes on behalf of someone, that is income. It's not really your problem whether or not it was on the 1099, as the treatment would be identical.Comment
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Read the contract it should address this issue.Believe nothing you have not personally researched and verified.Comment
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