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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Is there a specific date a Form 1099 must be sent to ...

Resolved Question:

Is there a specific date a Form 1099 must be sent to an employee? Also, if the employer paid the employee with cash and the employee had no Workers' Compensation coverage, except 1 check in the amount of $400.00, shouldn't the 1099 only show the amount of $400.00?
Submitted: 10 years ago.
Category: Tax
Expert:  RD replied 10 years ago.
Yes, Form 1099 must be issued to an employee by Jan 31st, 2006 for the payments made in 2005.

You are required to issue a Form 1099-MISC, Miscellaneous Income, for each person to whom at least $600 in services (including parts and materials)in the ordinary couse of business has been paid during a year.
So if you have paid $400 for services than you may not be required to issue Form 1099. If you do, than it must show the amount paid which in your case is $400.


Please note: This advice is based on limited facts provided by you. Since it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.
Customer: replied 10 years ago.
Reply to Renu V's Post: My son did some work for this person, but the person was paying him cash money and it was his understanding that this money was not going to be reported to the IRS because this person was not covering him with Workers' Compensation and was paying him with cash. He has now received a 1099 showing the amount of $1,340.00 on 2/25/06 in the mail. There was only 1 check written to my son from this person for $400.00.

Also, my son had received his W-2 from his other job and had already had his taxes done on 2/5/06 and sent to the IRS. He has already received his refunds.

Can the person in the first paragraph legitamately report the amount on the 1099 to the IRS when he only wrote one $400.00 check to my son?
Expert:  RD replied 10 years ago.
The employer can issue Form 1099 for payments made both - by cash and check.
If you had some other understanding with the employer than you might want to talk to the employer and get this straightened. But the employer is required to report whatever he paid.

If your son has received the other amounts ($1340-$400) in cash, and the Form 1099 amount is correct, than you will have to amend the return and show this Form 1099 income on his tax return.


Please note: This advice is based on limited facts provided by you. Since it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.
Customer: replied 10 years ago.
What about the fact that he didn't receive this 1099 until 2/25/06?
Expert:  RD replied 10 years ago.
Though you should have received Form 1099 by Jan 31st but that does not relieve you from the reponsibility of reporting your correct income.

You are required to report all your income no matter what and therefore you will be required to amend your tax return.

Please note: This advice is based on limited facts provided by you. Since it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.


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