Do I have any liability if I issue a 1099 to a contractor but they fail to report it or file their taxes?
Thanks for your input.
Nope. Your job is done so long as you properly and timely issue the form 1099 to the independent contractor and file the associated paperwork (in most cases, a form 1096).
If the taxpayer fails to file, that’s on him (or her). The same would be true for an employer who issues a form W-2.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
- Ask the taxgirl: 1099 for Rent
- Ask the Taxgirl: Forms 1099
- Ask the taxgirl: No 1099
- Ask the Taxgirl: Do Individual Taxpayers Submit a 1099?
- Ask the taxgirl: independent contractor and employee in the same year?