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Updated about 7 years ago on . Most recent reply

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Steve S.
  • Dallas, TX
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Hiring friends to do work on rentals and taxes

Steve S.
  • Dallas, TX
Posted

What happens if you don't 1099 them?

If it's under $600 for the year, it's not required right?

Can I still expense it or does that create some issue?

Same question for the people you pay to mow the lawn.  I've asked them where to send the 1099 and gotten no response.  Can I still expense?  What liability do i have?

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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
ModeratorReplied

1099 any one who is not incorporated to whom you pay more than $600 for the year. It's what is legally required per the IRS. 

Here is some IRS information regarding the penalties for not filing the 1099s. 

https://www.irs.gov/government-entities/federal-state-local-governments/increase-in-information-return-penalties-2

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Kolodij Tax & Consulting

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