Cash discount?

Question

What is a reasonable discount to expect when paying a contractor in cash at their request?  (yes they are licensed and insured)

Traci Lovelace · Answer

If I have a receipt for the whole amount from them, I am not sure how I am participating in fraud.

Leigh C · Answer

Not sure the going rate for tax fraud.

Traci Lovelace · Answer

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!

Alexander Felice · Answer

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.

Alexander Felice · Answer

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.

Cash discount?

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