You are correct pegsat, Tje 1099s better match the payed or provable income paid. As long as you are on a Cash accounting and not accrual accounting method. Cash is figured as what is recieved, accrual is figured when it actually made regardless of when it is paid. Who in the business would want pay the taxes on the money they may or may not recieve in the future.
It is just as important to know where your money came from, as where it went. CPA also told a person I know that if anything unlawful comes up there is no limit to how far back you can be checked, although most people believe it is 7 years. Unlawful,criminal, illegal how ever you to look at it is doing something you knew was wrong. Burden of proof in tax law is YOURS not Uncle Sams.
If it were a signficant amount I would go to a cpa with bank statements and get it taken care of. You can contact Irs and file a dispute.
Hopefully you and the other party can resolve it without going through all problems. Good luck to you
Re: Companies falsifying 1099's??
Member #: 22394
Registered: 3/15/2003
Posted:
460
Name:
Shane Fountain
Name:
Shane Fountain
Company:
H&F Catv
Occupation:
Coax&Fiber Construction/Splicing
Location:
S.C.
Personal:
early 50s
Experience:
~31 years
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