New Sch C filer paid their 12 yr old child $1K in 2013 and did not issue a 1099-misc. Its my understanding that Copy A (red copy) of the 2013 1099-misc needs to be in the IRS hands no later then Mar 31st, 2014. An 1099-misc vendor told me I can still file a 1099-misc for tax year 2013 thru at least 3rd week of March 2014. Would you suggest the Sch C filer even issue a 1099-misc due to its their child?
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Form 1099-MISC
Yes, a 1099-MISC can still be issued and filed with the IRS. Even after March 31, it should still be issued and filed, but there could be a penalty for filing it late.
There's also a penalty for giving it to the payee late. But I don't think the kid is going to call the IRS and complain that his dad gave him the form after the deadline.
Can a 12-year old really be an independent contractor? [LMAO]
Did he set his own hours, and provide his own tools?
BMKBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process. -
NO, 1099-misc not app;ropriate in this case. child is an employee of the parent's schedule c business and must be issued a W2 form. Period.
For $ 1,000 the kid would owe se tax also. Whereas as an employee, no fica or medicare tax imposed.ChEAr$,
Harlan Lunsford, EA n LAComment
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