Why No 1099s Could Mean No Deduction
Amit Chandel CPA, CTS, CTP, CExP, CTRS, LLM(Tax) Author
Investor, Author, Tax & Exit Strategist, IRS Representation Expert: Aiming to help you keep & protect your hard earned money in a tax advantaged environment and achieve ideal business continuity & transition
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)?
Contact us at (562) 281-1040 tho help get relief from audit stress and financial penalties.