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The IRS has rules in place that government employee bureaucrats thought up with no regards to logic, common sense, or ease of use. And they have to follow rules congress put in place that no single human on the planet fully can understand. Really the tax code is so complex no human knows it all.
My company is pretty small, and we have to send out a handful of 1099s to companies we hired for services. The penalties for not doing so, or doing it wrong are what my CPA says are "draconian". To do a 1099 one must use a special IRS approved form, and it can't be generated by us on the computer. I can print my own tax return and all the bar codes and such are all part of the software. To do that with a 1099 is illegal!
For the few we need to send out it is cheaper to have my CPA file them and mail them than to buy the special forms. And we have until Feb 1st to get them mailed. Anyone that we sent more than $600 to over the year gets one. Unless it is a bank transfer, or credit card payment. Then the IRS has bank records they can see so no 1099 needed.
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Glen
49 Year member of the Porsche Club of America
1985 911 Carrera; 2017 Macan
1986 El Camino with Fuel Injected 350 Crate Engine
My Motto: I will never be too old to have a happy childhood!
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