Hope they are still happy after they pay their self-employment tax and healthcare “taxâ€....
They are happy because they are NOT paying it.
“They are happy because they are NOT paying it.”
1099 Misc forms go to the IRS. I suspect their computer checks the ones received vs the tax returns. If you have more than $400 of income on a 1099 Misc, you are required to pay self-employment tax. And if you do not have coverage, and you do not have an exemption, then you owe the Obamacare fine (tax, per Roberts).
Of course, people can and do cheat on their taxes. The IRS is not very good at tracking fraud down.