1099

This is the week, ya'all, ya'all.  Each and every one of you who handle employees and independent contractors know what I'm talkin' about.  Yup.  IRS form 1099.

Want to strike fear into any hypocrite who moans about how social economic injustice is ruining our country?  Just mention completing and submitting IRS form 1099 for goods and services (a-hem free trips and other goodies received from corporations).  They will turn tail in a nano-second pleading with you how those free trips and whatnot were not really a form of compensation and should not be reported to the IRS -- and therefore not taxable to the recipient.

Come again?  Today I received a complaint from a WAGE AND HOUR COMPLIANCE OFFICER who contacted me to whine about the amount I reported to the IRS for his job as an independent contractor for one of our sister organizations.  He thought it was $545 over what he thought it should be.  Really?  So, I checked my records and, yes, he did receive an extra $545 because it was a travel expense.  He was paid the $545 extra for a trip he took as an independent contractor, so it was reported.  He can deduct it on his 1040 as a business expense write-off.  That's the way it works.  He's not an employee.  We don't "reimburse" 1099 contractors for travel expenses.  Duh.

If you're going to challenge me, you better make certain you have your facts straight.  I will put you in a corner real quick if you don't.

This guy who is questioning me a big shot in San Mateo County so I did not want to get into a proverbial pissing match with him, but I wanted to let him know not to mess with me.  When I explained the measly extra $545 that was reported on his $130,000 paid contract services, he said that he was so concerned with doing everything correctly being he's the poster child of fair-play, honesty, and whatnot.

The idiot did not know that I also handle the money for another sister organization that paid out $15,000 in travel expenses for him and his wife to fly first class to attend a function in an exotic location.  I asked him if he received the 1099 on that (I did not send one out and for reasons I can't go into here and was not planning on doing so until he questioned me about the lousy $545 he did not want to claim as income on his taxes from the other sister organization.  I just wanted to see how he would respond).  He was, after all, soooooooooo concerned I was reporting his taxable compensation correctly.  This guy *is* a wage and hour compliance officer, you know.  Such an outstanding member of the community.  bullshit. 

Dead silence on the phone.  I could hear the calculator going in his head.  Because he questioned what he thought was an over-reporting of $545 he opened the can of worms of the  $15,000 under reporting for the exotic trip he and his wife enjoyed from the the sister organization.  Taxes on the trip would be about $5,000 for him if I filed the 1099.    Hmmmmmmmm  arguing over $545 or not getting taxed on a $15,000 trip.  Time is UP!!!  Answer is???????????

If you're going to f*** with me, you better make certain you know what you're doing or I can make your life a living hell.   NEXT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!