Sch C Wages Or Contract Labor?

[SueBaby]

If I know someone has not issued a 1099, I won't take a deduction for the amount.

Other than ignorance, there are some reasons for not issuing a 1099. The recipient might be on disability - collecting $$$ every month because they are not able to work. Then they go out and collect $3000 for doing someone's roof. Another possible reason is they don't want to file a return -- or don't want to show the money as income.

I don't have any sympathy on these situations. If my client wants to deduct the expense, he has to issue a 1099. If he hasn't done this, then I will prepare one for him and charge him to do it. If it's late, then so be it.

If the payment is not in the course of business, there is no requirement to issue one. Of course, if it is not in the course of business, it's not deductible either.

MY client was issued a 1099 on a mechanic job---within HIS Sch C he hired someone on his own to help him. He just wrote checks out to him over the year of $23,500 in contract labor. Later AFTER I transmitted it and had the time to Think again---I did not ask them did they issue a 1099 for that worker. And of course I started to worry about it and it is still brewing about in what my action is to take ----if any.