Quote:
Originally Posted by Camron Rust
I file the 1099s with the IRS on behalf of many of my Reftown clients. None of them report anything for those making below $600. There may be some, but I haven't seen any.
There are a few who, in very special cases, have to report all income to a government entity. But it isn't the IRS. The ones I'm aware of are related to garnishments for various reasons and it is usually a state level entity.
There are some individuals who are subject to backup withholding. That may mean that person has to get a 1099 no matter how much they make. Maybe that is related to prior tax payment problems. Not sure...I don't have anyone in the ones I file subject to that.
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The IRS, in recent years, has leaned on and 'encouraged' entities with high independent contractor expenses to issue more 1099s. But indeed, the legal requirement is only if any single contractor/vendor gets $600 in total. I think the trend of more 1099's will only grow.
Here, there's one school district that issues 1099s to everyone. I got one 2 years for 1 game. $40.