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Discussion in 'Business Operations' started by jggarrettllc, Mar 21, 2006.

  1. jggarrettllc

    jggarrettllc LawnSite Member
    Messages: 18

    Ok heres a question for any cpa's in the bunch. I did alot of carpentry work for a guy ($21,000) last year. Well at the end of the year we had a falling out and he witheld $4,400, but he said he would not 10-99 me for any of the money. I put the money in my llc bank account, so what can i do. Some say not to claim it........some say jail time. I'm searchin for answers....thanks


    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    withheld 4400 for taxes or just didn't pay you. either way it is in your bank account so there is a paper trail you have to claim it
  3. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Messages: 4,771

    Even if you had to pay that $4400 in taxes, I would tell the SOB to pay you the money he owes you. Sounds like you wasn't going to 1099 you for any of the money paid to you, but since you had a fallen out with him, he's going to be a dick.
  4. jggarrettllc

    jggarrettllc LawnSite Member
    Messages: 18

    he cant come up with the cash so he TOLD me that he was gonna hold the money and not 10-99 me. so to get the money im gonna have to go to court. He is payin the tax on the money. I'll probably call the irs and ask them......rat him out.
  5. pennypincher

    pennypincher LawnSite Member
    Messages: 34

    My advice is when you do your tax return for 2005 do a substitute w-2 for the money you did receive from this guy. You probably will not be able to efile the return unless you know his employer id number, so mail the thing in. That covers your butt if IRS notices what into your bank account does not match what is on your tax return. This still does not keep him from doing something stupid, but it does give you a little to fall back on if things get ugly. If this guy is in financial trouble he is going to do everything he can to lower his tax liability. So he will most likely say he payed you whether he did or not. Another option is on the Schedule C put the money you got from him under other income. If you had any expenses for the work you did that does go on your return, but the money you aint got may be gone. But this does cover you to a point. Hope this helps. Pennypincher
  6. newleaflandscape

    newleaflandscape LawnSite Senior Member
    Messages: 348

    If you have something in writing showing that he has to pay you, send him an invoice for the amount owed. Then when he doesn't pay send him a 10-99 for the amount he owes you claiming that he profited by not paying you. You can then show that 4400 as a loss, that is if you dont think you have a chance in getting paid. Plus he will have to pay income tax on it, should piss him off good.

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