Tax tips no labor receipts from contractors any advice on filling

[Adrian Laney]

Didn't 1099 any of my contractors so I have no labors receipts now that it's tax time any suggestions 

[Joe Splitrock]

@Adrian Laney you paid cash, no receipt and no 1099. That means there is no expense to claim here. 

Paying cash is never a good idea in a business. IRS auditors will want to see both a check and invoice/receipt or credit card and receipt. 

If you pay an individual contractor over $600 in a year, then you need to send a 1099. If you had the work done by a corporation or you used credit card, then no 1099 is required.

These rules are in place to prevent tax evasion and tax fraud.

This is the IRS publication discussing record keeping:

https://www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep

This is the IRS publication discussing 1099:

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf