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To: Zeneta

“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.


25 posted on 02/09/2016 9:38:56 AM PST by Mr Rogers (We're a nation of infants, ruled by their emotion)
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To: Mr Rogers

I thought it was $600 and that that reporting requirement was removed from the ACA.

So, what happens when a Business that has payed someone tens of thousands and never files a 1099 with the IRS?

They just run it as an expense item and by not filing they don’t raise any flags.


27 posted on 02/09/2016 9:49:33 AM PST by Zeneta (Thoughts in time and out of season.)
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