Tax and Money Tip of the Week:
Q&A: No 1099, No Deduction?
January 22, 2020 | No. 469
Why No 1099s Could Mean No Deduction
Careful! If you didn’t issue 1099s to your contractors, you could face some nasty penalties.
You see, if the IRS audits your tax return, your friendly auditor may claim that you can’t deduct the contractor payments because you didn’t issue those 1099s. Ouch!
And then to add salt to the wound, the IRS will impose substantial penalties for failing to file those 1099s.
Actually, there is no ouch because auditors often don’t understand the law and get things wrong.
Want to stay out of trouble in the first place and avoid penalties (and anxiety)?
Click on this article titled No 1099, No Deduction? to find out more.
Questions or Comments?
Mark Vitek, CPA/PFS, CFP®
…until next week.