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Old 01-29-2009, 05:22 PM
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1099 tax,legal question on body work

I did some body work for a buddy this last summer. It was over the course of a few months,and the total for all the work came to about $2500. Now,all of a sudden,he calls me up wanting my social security# so he can fill out a 1099. When I first started doing this work for him,he said that he wouldn't claim it on taxes,it would just be a friend helping a friend! So, my question is; Should I give him my social#? Can he do this since there was nothing legal signed? [He did pay me with checks.] Since he wants to do this,is he entitled to pay anything like social security or anything like that? Please give me advice on this,guys. I'm really confused on the whole situation. Thanks.

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Old 01-29-2009, 05:29 PM
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Deny you did it and call him a liar..done
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Old 01-29-2009, 05:37 PM
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Quote:
Originally Posted by amanderson
I did some body work for a buddy this last summer. It was over the course of a few months,and the total for all the work came to about $2500. Now,all of a sudden,he calls me up wanting my social security# so he can fill out a 1099. When I first started doing this work for him,he said that he wouldn't claim it on taxes,it would just be a friend helping a friend! So, my question is; Should I give him my social#? Can he do this since there was nothing legal signed? [He did pay me with checks.] Since he wants to do this,is he entitled to pay anything like social security or anything like that? Please give me advice on this,guys. I'm really confused on the whole situation. Thanks.
I dont think a hotrod forum is the best place to be looking for tax advise.
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Old 01-29-2009, 05:48 PM
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lesson of the day: Cash talks, the rest walks
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Old 01-29-2009, 05:56 PM
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But if I denied it,wouldn't the checks kinda be proof?
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Old 01-29-2009, 05:59 PM
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1099

Been in this same situation a time or two. The old saying is that you can't mix friends and money. I don't entirely believe this because I have learned that when you do mix friends with money, you find out just who your friends are. I would first remind him of what he originally said "he wouldn't claim it on taxes, it would just be a friend helping a friend". If that doesn't work then tell him that you are going to need more money. The reason being that you will have to match you own social security and you will have to pay self employment taxes. I don't know if you have ever filed a 1099 before but all of the work related taxes an average employer has to pay, you will have to pay on the 2500.00$. Your 2500.00$ will be reduced to about 2000.00$ or less in actual spending money. As a last resort I would tell him to ******* off because you don't need a friend that goes back on his word. And by no means would I give him my social security number.

This isn't really tax advise, it's life advise and I hope it helps.

Chris
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Old 01-29-2009, 06:16 PM
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advice.....

HI,do not give out your social security # to anyone. do not give out your credit card #,and do not give out the 3 digit security # on the back of the card,.that clown is not a friend......tell him you paid someone else to do the work...
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Old 01-29-2009, 06:32 PM
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Please keep the advice comin',guys. I'm really confused about this,and I need to know what to do. Would he have to give me some kind of paper work to fill out and take to my tax guy? Because he hasn't givin me anything like that,yet. He just keeps leavin' messages on my answering machine. I was going to get my taxws done this coming Monday. But if I do,will I be in trouble for not claiming this? Like I said before,he hasn't givin me any papers,so if I file my taxes and dont claim this, am I at fault or is he? I'm really mad that he is doing this. I was just trying to make a few extra bucks for the summer, not start a part time job. I guess I should keep this hobby for my own vehicles and thats it. This sucks.
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Old 01-29-2009, 06:52 PM
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DO NOT give out your ssn ever. Tell him to go piss up a rope and call it good riddance. Legally you probably would have to file on it as income if it came to push and shove but if you don't give him the info he can't claim it.Besides there is no need for him to file a 1099 unless you were a subcontractor if going to deduct it for business reasons all he would need is a receipt. How often do you fill out a 1099 if you take a car to a dealer for repairs? He has no need of your private info.
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Old 01-29-2009, 07:31 PM
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Advice

You have too much at stake here to rely on advice from non-professionals. You will need to work with your tax advisor anyway on this so suggest you try to get in tomorrow since it's the last day for 1099's.

You are not paying for advice here and I can't offer any reassurances other than to tell you this information is coming from another person that I guarantee you knows what they are talking about. So for what it's worth:

"It may not be the buddy causing this, it could be that his accountant or tax person is requiring it. If the buddy is using that cost to help prove the cost of the car for insurance purposes or value as an asset. I would need to know more.... He can email me and I will try and answer any questions that he may have."

"If his supplies totalled $2,500 then it would just be a wash and would just require the reporting on a sch C. "

There's more, but you need to get with someone who you trust to do your taxes tomorrow.
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Old 01-29-2009, 08:43 PM
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taxes

Also be aware this could expose you to liability for sales taxes, business taxes etc. You really nees to talk to a professional about this, perhaps
a lawyer as well as an accountant. Hope it all works out. You do not need
to file a 1099 when you take your car to the dealer as they are a business
entity and have to file already- but anytime you pay an individual over
600 in a calender year there should be a 1099 for the IRS to match against
the recieving individuals taxes. Of course if you declare the income you can
write off your expences, your depreciation on the equipment,a portion of
your utilities, etc. You might find it caused a loss on paper at least. Hope it all works out for you. Jim
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Old 01-29-2009, 10:00 PM
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SIDE WORK RULE #1!

Cash Only- Checks Not Honored.

You had better bargain with him. He can get your SS # from the IRS if he files the correct form. That and the check(s) got you.

You would enter the amount as a professional filing (Schedule C). If you want to claim material costs, it will lead to more than its worth.
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Old 01-29-2009, 10:09 PM
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Whether he will get a tax write off or not. ……. he doesn’t need your SS #…..for that…
Im assuming he has some type of business…to be filling out that form?? Does he have some type of business?? I work at a parts store and when a customer buys I believe 10,000 in cash. In a day in parts… They have to file out some type of form (I forgot the name of the form) that’s I bout it…since it was only 2,500 that’s chump change…

Tell him “I thought you weren’t going to file whatever on taxes”??? And let us know what he tells u.

If I where you I would write a a receipt/invoice for the work you did and get it notarized that’s it.

is he trying to be on good terms with unlce sam or is he wanting more???

My opinion!!! Whatever happens after this….stop being his friend delete him from your life….cus he broke his word u don’t need ppl like that in your life….….and now you have to go out of your way to close this deal you thought was closed a long time ago.

Nobody likes doing taxes and when the day comes ppl are looking for anything to get more on there taxes…
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Old 01-29-2009, 10:14 PM
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Did you do this for your buddy's business on a business vehicle? That would be the one reason for him to want to produce a 1099 so he could deduct it as a business expense. And, if he did do it for a business vehicle and his accountant is trying to claim it as a business expense and you took checks, you may have a problem.
Or, is he claiming a loss due to an accident which was not covered by insurance?
Or, did you do something to upset him?
Bottom line, the IRS takes a dim view of people making money without paying taxes. When you look at all the crimes Al Capone committed, the one he got nailed on was income tax evasion.
My guess is the taxes you will have to pay will be far less than the trouble.
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Old 01-29-2009, 10:22 PM
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Don't give him anything- this guy it trying to shake you down. Forget it and go on with life. If in the future if you get a notice from the IRS, deal with it at that time. I doubt if you will hear anything.
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