I'm wondering if any of you have ever ran into issues with 1099's? This could cover any issues, such as... Audited over a 1099 Not recieving a 1099 Forgetting to file a 1099 Recieving an incorrect 1099 Sub-contractor not filing a 1099 The primary reason I have this issue on the brain is to do with 'what if a sub-contractor fails to file' a 1099 you send? Is this a guaranteed audit situation? Who gets audited? You? Them? Both?... With those questions asked... how might you handle this situation?... If you were subbing work to another contractor, all went well, but then that sub-contractor came to you to inform you of a legit "hardship" situation, with severe concerns of foreseeing an inability to meet the tax obligations involved? What in the crap do you do in a situation like that? I mean I know dang well I'm doing things like I should, filing what I should, paying my fair share of taxes, ect... but at the same time I don't want to have to assume more tax liability for all the money paid out to a sub. It's starting to play out like a "catch 22" situation, because the last thing I want is to see the IRS pay anyone a visit.