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To all those who think they don't HAVE to pay taxes:

Discussion in 'Lawn Mowing' started by Doogiegh, Feb 24, 2004.

  1. Doogiegh

    Doogiegh LawnSite Senior Member
    Messages: 871

    To all of the lawnsite people out there who don't keep any records of what they do, etc etc. here's something that I believe it correct to keep you up at night.

    If you did work for anyone during 2003 and it totals $600 or more, they may very well turn in a 1099. For example, you cut for a day care center on the side on weekends and think hey this is great. Only problem is you did it 25 times for $30 a weekend and made $750 on that day care center. And they pay you a Company check drawn from "ABC Daycare Center"...

    The ABC Daycare center most likely be reporting YOU as an expense and turning in a 1099 form on you.

    And now you go and claim a big fat 0 (ZERO) income from cutting lawns, cause it's just something you do on the side for kicks, right?

    Wait till the IRS comes knocking wondering about this 1099 they got from the day care center that you never reported to them. And they could look upon that as flat as fraud of mis-representation of income, which they don't think too fondly of.

    I believe the example I wrote above to be accurate. I'm sure if it's not, someone here will correct it. But I read this example on another type forum involving sidework and saw how it would apply to here.

    Hopefully, I may of convinced one person reading this to do the right thing and claim their lawn income for the benefit of the industry.. You may think you get away with it, but you don't..
  2. HarryD

    HarryD LawnSite Bronze Member
    Messages: 1,068

    huh what brought this on :confused:
  3. Doogiegh

    Doogiegh LawnSite Senior Member
    Messages: 871

    1) It's tax time for everyone for their personal returns


    2) it seems that there are LOTS of new users lately who are doing lawns with tax avoiding questions, like insurance, etc. I was reading on another site a similiar thread about how often people in small business get caught by someone ELSE turning in a 1099 on them. And then you sometimes don't even know that was turned in on you until you get the IRS notice...

    I think for anyone starting out that they think they can keep on cutting and this is great being a 'scrub' so to speak..

    What I wrote is just one example reminder of how you get caught...
  4. lawnyogi

    lawnyogi LawnSite Member
    from Indiana
    Messages: 73

    With all the experience on this board, I never thought I could offer anything to it... but I will try...

    I had a 1099 turned in on me a while back... after they caught me avoiding the tax (was not an LCO at the time though) that year, they automatically started a formal check of the previous three years. And guess what... there were more... and I got caught Consequently I had to pay back taxes and penalties and interest on my federal taxes, then they send a letter making the state get involved and the state comes with readjusted income figures for the years in question. It was years before I got caught up financially.

    That was an idiot move when I was in my late teens and early twenties. It really wrecked my credit. I would suggest against it.
  5. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,660

    I'm looking forward to that in reverse IRS states when you take a loss over 600 you are to send the party a 1099 and I will take great pleasure in doing that to some one that cheats me out of my money and I wont hesitate to add on interest and my own penaltys to make that as big a sticker shock as I can revenge is a dish best served cold. And if it gets them audited so much the better.
  6. Phishook

    Phishook LawnSite Bronze Member
    Messages: 1,143

    They'll have to get your T.I N. or Soc.#. So unless you go around giving it to everyone, you should know who is going to send a 1099.
  7. specialtylc

    specialtylc LawnSite Bronze Member
    Messages: 1,656

    Phishook,you got it right.Also they are just like W-2s .They must be mailed out by Jan. 31. Also I suppose you really dont have to report any income that you dont receive a 1099 for.
  8. bastalker

    bastalker LawnSite Senior Member
    Messages: 965

    phishook nailed it!!

    Just keep good records, an you wont have any problems!

    And dont do daycares!!;) ;)
  9. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    Your customers give you their ss#?
  10. exmarklover

    exmarklover LawnSite Member
    from midwest
    Messages: 44

    Just to play devils advocate, you need to give the "day care" your socal security number before they can file a 1099 on you or they just use your name right? So if they just use your name how is the IRS going to track you down? FYI to all "scrubs" if they ask for your ss number you better file that account!

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