Imagine this: you didn’t issue Form 1099s to your contractors. Now, the IRS is auditing your tax return, and the auditor claims you lose your deductions because you didn’t issue the Form 1099s. Is this correct? Tax Law No. IRS auditors often make this claim,...
The easiest way to avoid the headaches and potential penalties caused by issuing 1099s to independent contractors is to structure your activities to: (1) minimize the number you have to issue, and (2) prepare in advance if you do have to issue them Strategy 1: Select...
