If I dont report a 1099 on my Tax returns, will IRS only find out if I get audited?

[dodger33]

I thought the rich hide behind corporations. I will read books on the legality of forming a corporation. I will try to figure out what you can and can't do.

No need to form a corp. simple dba will suffice.

[UNCGQ]

You're wrong here Steve. Omission of forms is easily caught by IRS computers, but many times it takes a year or so and interest and penalties are tacked on.

It might take them two years to 'reconcile' it, but eventually you'll get a letter saying 'pay this plus penalties and interest, thank you and have a great day'.

[Salmon Steak]

I don't need to do anything illegal. I will study it, speak with a lawyer if necessary. I will try to find the best legal loop-holes. I will be like Mitt Romney!

[NYSportsGuy210]

in one year and thhis was 5 years ago, i wouldn't report 100k worth lol

Did you ever get caught? And if you were in the United States and say reported it wouldn't you get arrested for gambling illegally?

[rkelly110]

Any tax preparer or software can do an amended return. The guy who wrote the 1099
can be fined for getting it to you after the 31st of Jan.

Git R Done!

[SlickRick1382]

You're wrong here Steve. Omission of forms is easily caught by IRS computers, but many times it takes a year or so and interest and penalties are tacked on.

More like they purposely wait a year or so to tack on those charges

[Flashmo]

I'm self employed, and I think that if the income I report is greater or equal to the 1099's I get, I should be fine

[Living The Dream]

I have w-2 and 1099 income. You can almost always have more deductions that your 1099 income which will offset it. You will absolutely get nailed if you don't claim it.

Here's a tidbit for anyone owing taxes. It is claimable in a bankruptcy. There are guidelines. If its more than 30 months since you FILED it CORRECTLY and if you haven't made payment arrangements or any payments you can put it in a bk.

I might be off a few months on the timeframe, but its in that area. Key to this is when you file and not the years you filed for.

[DOMINATER]

If you get caught they will bust your balls forever, if you were collecting unemployment or disabilty then you have to forget that paperwork.

[xelemental]

I have w-2 and 1099 income. You can almost always have more deductions that your 1099 income which will offset it. You will absolutely get nailed if you don't claim it.

Here's a tidbit for anyone owing taxes. It is claimable in a bankruptcy. There are guidelines. If its more than 30 months since you FILED it CORRECTLY and if you haven't made payment arrangements or any payments you can put it in a bk.

I might be off a few months on the timeframe, but its in that area. Key to this is when you file and not the years you filed for.

Hey I have a question which sounds like we are on the same boat or to anyone else that might know this answer? 12 points for a good detailed answer:

I was doing some google researching and since I am a contractor with a 1099, was I suppose to make tax payments every quarter? Also what are some business expenses that will fly under the radar? Can I deduct my rent since I use my room to do some business (talking phone, going on laptop and do spreadsheets)?

Thanks!