What is a reasonable discount to expect when paying a contractor in cash at their request? (yes they are licensed and insured)
Not sure the going rate for tax fraud.
Yeah just go ahead and tell them upfront that you're going to be sending a 1099 so you can start working on finding a new contractor. lol
You should pay what the job is worth, take any discount you can get, but don't mess with the IRS along the way.
If I have a receipt for the whole amount from them, I am not sure how I am participating in fraud.
are you going to 1099 them? he wants cash so he doesn't have to pay taxes. You're supposed to 1099 him so he does have taxes.
Thanks for your response. They wanted cash because they are on a shoestring budget. I have receipts from the company (not an individual, but a business) for all payments. I'm pretty sure a 1099 is not required under these circumstances. I can't find anything to the contrary. Am I missing something? Thanks!