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Another 1099 Question for you smart ladies

Ok, dont bash or judge. I'll get a 1099 this year for about $9,000 that I haven't paid any taxes on and it will prevent me from getting any EIC, I will probably have to pay taxes this year because I didn't have anything held out. What will/can happen if I just don't file that 1099?

Answer Question

Asked by Anonymous at 4:30 PM on Jan. 6, 2009 in Money & Work

Answers (8)
  • They can audit you because that have it on file from the person who gave it to you. Juty pay, or you will pay more in the long run.

    Answer by Anonymous at 4:35 PM on Jan. 6, 2009

  • just*

    Answer by Anonymous at 4:36 PM on Jan. 6, 2009

  • It is fraud adn the IRS knows. 1099's are issued to the IRS just like W2's. Jail time is not worth the few thousand you will lose.

    Answer by Anonymous at 4:36 PM on Jan. 6, 2009

  • Not a good idea. The 1099 has your social security number on it. The person or business that paid you will submit it to the IRS so that they can properly deduct the expense of paying you on their return. You need to report it in your income on your return. 1099s are cross checked by the IRS (matched to your tax return by your social security number), so you'll get a notice for tax due for the amount of income included on the 1099. You may also have to pay interest.

    Answer by Anonymous at 4:37 PM on Jan. 6, 2009

  • The people that sent you that 1099 send it to the IRS. So you will get a notice for failure to file. And you will be penalized. File it and set up a payment plan, there is no way around this.

    Answer by feesharose at 4:50 PM on Jan. 6, 2009

  • Yah my 1099 is screwing me out of like 1500 bucks! it sucks but I gotta deal with it. Listen to the pp and just report it like your supposed to. If it wasn't for having a baby i'd be paying this year because we struggled so much I had to take my money out of my retirement fund just to get by!

    Answer by britni11 at 5:12 PM on Jan. 6, 2009

  • Please file it and pay.
    Big Bad Bertha doesn't need another girlfriend on her cellblock, if you know what I mean. ;)

    Answer by PrydferthMenyw at 8:03 PM on Jan. 6, 2009

  • **work at tax firm. This is what I have seen:

    If you do not file, the IRS will still get a copy. The first thing they will do is send you a letter stating that they have changed your return to reflect the additional income and request payment of the additional tax (plus self employment taxes if applicable) and probably interest and maybe penalties. We have always either paid at this point or rebutted the letter so not sure what happens if you refuse to pay.

    The best approach is to file your return and then request a payment plan if you cannot pay it all at once.

    Answer by Anonymous at 9:18 AM on Jan. 7, 2009

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