1099 for contractors for buy/hold investor

Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes

I'm a PASSIVE buy and hold investor. I have property managers and I buy from turnkey providers.

I want to barely look at my monthly statements and let my investment grow as passive as I can.

That "passive" investing becomes very active during tax season. Even though my property managers send me end of year statements, it paperwork and tax info gathering just kills me.

I love the chase but hate the house cleaning.

Here is my question: As a purely passive buy/hold investor, do I need to generate a 1099 for contractors for times greater than $600. Now, most of my repairs are done via property managers but a few big ticket items were done outside of the property managers like - roof replacement.

So far it's clear that if you are running an active flipping or do a lot of rehabbing, you need to generate 1099s. But on the forums at least, it seems to suggest that as a buy/hold passive investor, that 1099s are optional.

I would really like to hear from other pure buy/hold investors about how they have been doing tax preparation.

Sadly, I just learned about 1099s just now and scrambling to get them done.

Buy/Hold REI just seemed much less passive after learning about 1099s.

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Brandon Hall

CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes

10y

@Joe Kim your CPA is incorrect and I suggest you consider finding a real estate savvy CPA post-tax season.

H.R. 4 (P.L. 112-9) repealed the 1099 rules for real estate investors engaged in rental activities. The exception is if you materially participated in your rental activity and it rises to the level of a trade or business. The most obvious case of this is being designated a real estate professional in regards to your rental activities.

Now, if you want to be super conservative, you should a 1099 everyone you've paid over $600. Just know that it's not necessary and that a CPA saying that you must do so, without caveating with the H.R. bill, probably doesn't know real estate tax inside and out like they may claim to.

And if they are charging anything more than $15 per 1099 or not referring you to a webservice (like track1099.com) then you should also consider switching service providers.

@Daria B.

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Steven Hamilton IIPro Member
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
10y
Originally posted by @Joe Kim:

I'm a PASSIVE buy and hold investor. I have property managers and I buy from turnkey providers.
I want to barely look at my monthly statements and let my investment grow as passive as I can.
That "passive" investing becomes very active during tax season. Even though my property managers send me end of year statements, it paperwork and tax info gathering just kills me.
I love the chase but hate the house cleaning.
Here is my question: As a purely passive buy/hold investor, do I need to generate a 1099 for contractors for times greater than $600. Now, most of my repairs are done via property managers but a few big ticket items were done outside of the property managers like - roof replacement.
So far it's clear that if you are running an active flipping or do a lot of rehabbing, you need to generate 1099s. But on the forums at least, it seems to suggest that as a buy/hold passive investor, that 1099s are optional.
I would really like to hear from other pure buy/hold investors about how they have been doing tax preparation.
Sadly, I just learned about 1099s just now and scrambling to get them done.
Buy/Hold REI just seemed much less passive after learning about 1099s.
You are not required to issue 1099s unless your investment is a trade or business. Being that you work full time and then some in a different field as you mentioned and use property managers, that you are not an RE Professional.
[email protected]224-381-2660
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Daria B.
Rental Property Investor · Gainesville, FL · Member since 2015 · 1k+ posts · 432 votes
10y
Originally posted by @Steven Hamilton II:

Originally posted by @Joe Kim:
I'm a PASSIVE buy and hold investor. I have property managers and I buy from turnkey providers.
I want to barely look at my monthly statements and let my investment grow as passive as I can.
That "passive" investing becomes very active during tax season. Even though my property managers send me end of year statements, it paperwork and tax info gathering just kills me.
I love the chase but hate the house cleaning.
Here is my question: As a purely passive buy/hold investor, do I need to generate a 1099 for contractors for times greater than $600. Now, most of my repairs are done via property managers but a few big ticket items were done outside of the property managers like - roof replacement.
So far it's clear that if you are running an active flipping or do a lot of rehabbing, you need to generate 1099s. But on the forums at least, it seems to suggest that as a buy/hold passive investor, that 1099s are optional.
I would really like to hear from other pure buy/hold investors about how they have been doing tax preparation.
Sadly, I just learned about 1099s just now and scrambling to get them done.
Buy/Hold REI just seemed much less passive after learning about 1099s.
You are not required to issue 1099s unless your investment is a trade or business. Being that you work full time and then some in a different field as you mentioned and use property managers, that you are not an RE Professional.
There has been much discussion on this topic here in BP. Like Joe I am a buy and hold but I don't buy from turnkey. I buy my properties and put them under a PM for management but they don't manage and I walk away. I am fully into the decision making. However, the PMs for all my properties don't place and go, I am the one that says yes/no to tenant placement and authorize all repairs. They send me the description of what occurred and I say "yes I'll pay", or "no that is tenant responsibility". etc. PMs responsibility is to collect and disperse and fix under a certain $ amount that is far and below $600.
With that said, the vendors that the PMs use I've never looked at regarding the 1099 issue since all repairs were either by a Company (Inc) or were below the $600 range.
I have a situation now I think like Joe that warrants a 1099 because the company called in to do the work is not Inc. but a LLC and the work will be over $600. From what I understand I need to issue a 1099 to this company.
I also had work done on my rentals that exceeded $600 from a vendor that I hired myself and oversaw work to completion. They were also a LLC.
So in these cases, is a 1099 still warranted?
Thanks
0 Reply
Joe Kim
OP
Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
10y
Originally posted by @Daria B.:

Originally posted by @Steven Hamilton II:
Originally posted by @Joe Kim:

I'm a PASSIVE buy and hold investor. I have property managers and I buy from turnkey providers.
I want to barely look at my monthly statements and let my investment grow as passive as I can.
That "passive" investing becomes very active during tax season. Even though my property managers send me end of year statements, it paperwork and tax info gathering just kills me.
I love the chase but hate the house cleaning.
Here is my question: As a purely passive buy/hold investor, do I need to generate a 1099 for contractors for times greater than $600. Now, most of my repairs are done via property managers but a few big ticket items were done outside of the property managers like - roof replacement.
So far it's clear that if you are running an active flipping or do a lot of rehabbing, you need to generate 1099s. But on the forums at least, it seems to suggest that as a buy/hold passive investor, that 1099s are optional.
I would really like to hear from other pure buy/hold investors about how they have been doing tax preparation.
Sadly, I just learned about 1099s just now and scrambling to get them done.
Buy/Hold REI just seemed much less passive after learning about 1099s.
You are not required to issue 1099s unless your investment is a trade or business. Being that you work full time and then some in a different field as you mentioned and use property managers, that you are not an RE Professional.
There has been much discussion on this topic here in BP. Like Joe I am a buy and hold but I don't buy from turnkey. I buy my properties and put them under a PM for management but they don't manage and I walk away. I am fully into the decision making. However, the PMs for all my properties don't place and go, I am the one that says yes/no to tenant placement and authorize all repairs. They send me the description of what occurred and I say "yes I'll pay", or "no that is tenant responsibility". etc. PMs responsibility is to collect and disperse and fix under a certain $ amount that is far and below $600.
With that said, the vendors that the PMs use I've never looked at regarding the 1099 issue since all repairs were either by a Company (Inc) or were below the $600 range.
I have a situation now I think like Joe that warrants a 1099 because the company called in to do the work is not Inc. but a LLC and the work will be over $600. From what I understand I need to issue a 1099 to this company.
I also had work done on my rentals that exceeded $600 from a vendor that I hired myself and oversaw work to completion. They were also a LLC.
So in these cases, is a 1099 still warranted?
Thanks
My CPA made it clear, the only ones exempt are corporations = S-corp and C-corp.
LLC can be treated as a partnership vs. corporation....(whatever that means??)
So only some LLC are exempt if they are a corporation.
Daria, let us know how things work out. I found 3 vendors that I need to hunt down for 1099-misc. And yes, my cpa is charging me extra for 1099-misc.
Lesson learned. Never pay anything yourself. let you PM pay contractors, and then you don't have to deal with the hassle (...I think)
This kind of headaches makes me
#1 want a flat tax
#2 stop buying more real estate due to the headache of paperwork/tax prep
#3 grow a large enough portfolio so I can hire someone to do all the bookkeeping...all year.
0 Reply
Brandon Hall
CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
10y
@Joe Kim your CPA is incorrect and I suggest you consider finding a real estate savvy CPA post-tax season.
H.R. 4 (P.L. 112-9) repealed the 1099 rules for real estate investors engaged in rental activities. The exception is if you materially participated in your rental activity and it rises to the level of a trade or business. The most obvious case of this is being designated a real estate professional in regards to your rental activities.
Now, if you want to be super conservative, you should a 1099 everyone you've paid over $600. Just know that it's not necessary and that a CPA saying that you must do so, without caveating with the H.R. bill, probably doesn't know real estate tax inside and out like they may claim to.
And if they are charging anything more than $15 per 1099 or not referring you to a webservice (like track1099.com) then you should also consider switching service providers.
@Daria B.
5 Reply
George P.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
10y
i have to agree that it's a major headache for most people. i keep track of everything down the last cent and i hate when there rules and regulations that make my head spin. my eyes just roll in the back of my head when i start to listen (forced to) legal BS. why can't it be simple?
1 Reply
Daria B.
Rental Property Investor · Gainesville, FL · Member since 2015 · 1k+ posts · 432 votes
10y
Thanks @Brandon Hall as @Joe Kim described his involvement with his rental properties, it differs from what I do, hence my explanation, although both of us are not professionals Joe seems to participate less than I do and I actually hire vendors during the rental period and when it's vacant.
This seems to make the issuance of a 1099 have a different meaning based on both of our investment "involvement".
The statement that @Steven Hamilton II made threw me a little and has me thinking yet again on whether I need to issue a 1099.
If I may though take from this H. R ruling without taking it our of context too much:
"The exception is if you materially participated in your rental activity and it rises to the level of a trade or business."
I think I am just going to be super conservative.
0 Reply
Daria B.
Rental Property Investor · Gainesville, FL · Member since 2015 · 1k+ posts · 432 votes
10y
Originally posted by @George P.:

i have to agree that it's a major headache for most people. i keep track of everything down the last cent and i hate when there rules and regulations that make my head spin. my eyes just roll in the back of my head when i start to listen (forced to) legal BS. why can't it be simple?
George,
How are you keeping your books?
I keep all my receipts as well as the vendor invoice.
I'm looking for a better way as I acquire more properties. Once I got my spreadsheets in order it's now easier to add a property to it for my expense/profit tracking.
I'm still not sold on just keeping paper or tossing all the paper and keeping just electronic. big sigh :-o|
0 Reply
George P.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
10y
Originally posted by @Daria B.:

Originally posted by @George P.:
i have to agree that it's a major headache for most people. i keep track of everything down the last cent and i hate when there rules and regulations that make my head spin. my eyes just roll in the back of my head when i start to listen (forced to) legal BS. why can't it be simple?
George,
How are you keeping your books?
I keep all my receipts as well as the vendor invoice.
I'm looking for a better way as I acquire more properties. Once I got my spreadsheets in order it's now easier to add a property to it for my expense/profit tracking.
I'm still not sold on just keeping paper or tossing all the paper and keeping just electronic. big sigh :-o|
i have "systematized" my process and it has actually helped me quite a bit. i do it all alone and then my wife goes through house by house expenses and creates a Cap Expense sheet that we just give to our CPA.
here's' what i do:
1. i enter the charge in Quicken PM and tag the property
2. i scan the receipt and put it in a folder that's specifically for Recepts-2016-March-$55.42-HD-3-8-16.pdf or .jpg
3. then i toss the receipt in the garbage.
4. once or twice a month i back up my whole hard drive to another hard drive.
this way if the IRS asks for a receipt, i can always find it. every now and then i lose a receipt and dont have it, but i have 99.8% of all receipts.
btw, i keep track of 28 or so properties.
does that help?
0 Reply
Daria B.
Rental Property Investor · Gainesville, FL · Member since 2015 · 1k+ posts · 432 votes
10y
Originally posted by @George P.:

Originally posted by @Daria B.:
Originally posted by @George P.:

i have to agree that it's a major headache for most people. i keep track of everything down the last cent and i hate when there rules and regulations that make my head spin. my eyes just roll in the back of my head when i start to listen (forced to) legal BS. why can't it be simple?
George,
How are you keeping your books?
I keep all my receipts as well as the vendor invoice.
I'm looking for a better way as I acquire more properties. Once I got my spreadsheets in order it's now easier to add a property to it for my expense/profit tracking.
I'm still not sold on just keeping paper or tossing all the paper and keeping just electronic. big sigh :-o|
i have "systematized" my process and it has actually helped me quite a bit. i do it all alone and then my wife goes through house by house expenses and creates a Cap Expense sheet that we just give to our CPA.
here's' what i do:
1. i enter the charge in Quicken PM and tag the property
2. i scan the receipt and put it in a folder that's specifically for Recepts-2016-March-$55.42-HD-3-8-16.pdf or .jpg
3. then i toss the receipt in the garbage.
4. once or twice a month i back up my whole hard drive to another hard drive.
this way if the IRS asks for a receipt, i can always find it. every now and then i lose a receipt and dont have it, but i have 99.8% of all receipts.
btw, i keep track of 28 or so properties.
does that help?
yes it does. omg 28?!?!?
I had considered the scanning since I do that for the leases, agreements, and any other documents like my mortgage papers.
I started backing up my MAC after a horrible incident when I was upgrading. In any case, I do have a backup now on my portable drive.
I could potentially mimic the #2 item in the scanning and still be able to cross reference that to my spreadsheet and then toss the paper copy. The books are killing me now. :\
You use Quicken and I just have Excel that works for me. Once I have everything set up I just create a new spreadsheet for a property. While I have individual spreadsheets for each property, I also have one that references back to these other spreadsheets for my roll up numbers. I may have to rethink that as well as properties grow. With your Quicken PM you can pull all the properties together, which is nice to have at a glance.
thanks
0 Reply
George P.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
10y
Originally posted by @Daria B.:

Originally posted by @George P.:
Originally posted by @Daria B.:

Originally posted by @George P.:
i have to agree that it's a major headache for most people. i keep track of everything down the last cent and i hate when there rules and regulations that make my head spin. my eyes just roll in the back of my head when i start to listen (forced to) legal BS. why can't it be simple?
George,
How are you keeping your books?
I keep all my receipts as well as the vendor invoice.
I'm looking for a better way as I acquire more properties. Once I got my spreadsheets in order it's now easier to add a property to it for my expense/profit tracking.
I'm still not sold on just keeping paper or tossing all the paper and keeping just electronic. big sigh :-o|
i have "systematized" my process and it has actually helped me quite a bit. i do it all alone and then my wife goes through house by house expenses and creates a Cap Expense sheet that we just give to our CPA.
here's' what i do:
1. i enter the charge in Quicken PM and tag the property
2. i scan the receipt and put it in a folder that's specifically for Recepts-2016-March-$55.42-HD-3-8-16.pdf or .jpg
3. then i toss the receipt in the garbage.
4. once or twice a month i back up my whole hard drive to another hard drive.
this way if the IRS asks for a receipt, i can always find it. every now and then i lose a receipt and dont have it, but i have 99.8% of all receipts.
btw, i keep track of 28 or so properties.
does that help?
yes it does. omg 28?!?!?
I had considered the scanning since I do that for the leases, agreements, and any other documents like my mortgage papers.
I started backing up my MAC after a horrible incident when I was upgrading. In any case, I do have a backup now on my portable drive.
I could potentially mimic the #2 item in the scanning and still be able to cross reference that to my spreadsheet and then toss the paper copy. The books are killing me now. :\
You use Quicken and I just have Excel that works for me. Once I have everything set up I just create a new spreadsheet for a property. While I have individual spreadsheets for each property, I also have one that references back to these other spreadsheets for my roll up numbers. I may have to rethink that as well as properties grow. With your Quicken PM you can pull all the properties together, which is nice to have at a glance.
thanks
try quicken PM, set up one and you will love it. you can do tons of reports and have everything in one place. scanning and tossing the receipts is liberating.
i dont have anything on my HD. everything is in the external. then i back up to ANOTHER external. this way, if the PC gets fried, the externals are intact.
having a GOOD file structure that's organized makes you feel in control!
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
@Joe Kim I didn't do 1099 for years and asked my accountant this year about it. He said yes that I need to be doing that. Then I looked at my taxes and there is a check box in part 1 of my Schedule E that specifically asks if I made payments requiring me to file 1099, indicating real estate investors need to do this. Then I read a NOLO book covering legal concerns for rental property owners and it stated I need to file 1099.
This topic is debated by accountants and the IRS refused to clarify, so it seems safe just to file them. The IRS can fine you $100 per 1099. Filing a 1099 doesn't cost you much of anything so we just decided to start doing it this year.
Also keep in mind that 1099 would need to be filed for property managers making over $600 per year from you. Not sure if you thought of that!
Bottom line is talk to your accountant about this and better safe than sorry.
0 Reply
Eddie T.
Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
10y
Joe Kim since you want to be as passive as possible and not deal with any issues of being a landlord why not be a lender instead?
1 Reply
Joe Kim
OP
Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
10y
Originally posted by @Eddie T.:

Joe Kim since you want to be as passive as possible and not deal with any issues of being a landlord why not be a lender instead?
Being a lender is not as lucrative as a real buy/hold investor. I want to be passive but i also want the gains you get from holding real estate. I love the chase of looking and finding real estate but bookkeeping and taxes are my achilles heel.
0 Reply
Joe Kim
OP
Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
10y
Originally posted by @Joe Splitrock:

@Joe Kim I didn't do 1099 for years and asked my accountant this year about it. He said yes that I need to be doing that. Then I looked at my taxes and there is a check box in part 1 of my Schedule E that specifically asks if I made payments requiring me to file 1099, indicating real estate investors need to do this. Then I read a NOLO book covering legal concerns for rental property owners and it stated I need to file 1099.
This topic is debated by accountants and the IRS refused to clarify, so it seems safe just to file them. The IRS can fine you $100 per 1099. Filing a 1099 doesn't cost you much of anything so we just decided to start doing it this year.
Also keep in mind that 1099 would need to be filed for property managers making over $600 per year from you. Not sure if you thought of that!
Bottom line is talk to your accountant about this and better safe than sorry.
IRS can fine me $100...per 1099. Guess what my CPA is going to charge me $95 per 1099! That's still better than getting audited. but still I need to see if I can do these 1099 myself.
0 Reply
Steven Hamilton IIPro Member
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
10y
Just to clarify a landlord is not required to issue 1099s.
If you have a trade/business you are required to. for example your PM company that you hire is required to issue a 1099 to YOU for the income received on your behalf. Then the PM is also required to 1099 anyone they hired to do work on your property as he PM company is they payer.
[email protected]224-381-2660
0 Reply
Joe Kim
OP
Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
10y
Originally posted by @Steven Hamilton II:

Just to clarify a landlord is not required to issue 1099s.
If you have a trade/business you are required to. for example your PM company that you hire is required to issue a 1099 to YOU for the income received on your behalf. Then the PM is also required to 1099 anyone they hired to do work on your property as he PM company is they payer.
Steven, but my CPA keeps telling me the law is unclear. Also, there are three items that I paid out of pocket without using a property manager. One of them involved a rehabbing my old primary residence that turned into rental during the recession that I sold in 2015. I paid contractor and home stager without a property manager. That activity may fall out of the "passive" category. but I'm not sure and my CPA is not clear about it either.
But if the penalty is $100 per 1099, that's pretty cheap given that my CPA wants to charge me $95 for each 1099!
0 Reply
Daria B.
Rental Property Investor · Gainesville, FL · Member since 2015 · 1k+ posts · 432 votes
10y
Originally posted by @Joe Kim:

Originally posted by @Daria B.:
Originally posted by @Steven Hamilton II:

Originally posted by @Joe Kim:
I'm a PASSIVE buy and hold investor. I have property managers and I buy from turnkey providers.
I want to barely look at my monthly statements and let my investment grow as passive as I can.
That "passive" investing becomes very active during tax season. Even though my property managers send me end of year statements, it paperwork and tax info gathering just kills me.
I love the chase but hate the house cleaning.
Here is my question: As a purely passive buy/hold investor, do I need to generate a 1099 for contractors for times greater than $600. Now, most of my repairs are done via property managers but a few big ticket items were done outside of the property managers like - roof replacement.
So far it's clear that if you are running an active flipping or do a lot of rehabbing, you need to generate 1099s. But on the forums at least, it seems to suggest that as a buy/hold passive investor, that 1099s are optional.
I would really like to hear from other pure buy/hold investors about how they have been doing tax preparation.
Sadly, I just learned about 1099s just now and scrambling to get them done.
Buy/Hold REI just seemed much less passive after learning about 1099s.
You are not required to issue 1099s unless your investment is a trade or business. Being that you work full time and then some in a different field as you mentioned and use property managers, that you are not an RE Professional.
There has been much discussion on this topic here in BP. Like Joe I am a buy and hold but I don't buy from turnkey. I buy my properties and put them under a PM for management but they don't manage and I walk away. I am fully into the decision making. However, the PMs for all my properties don't place and go, I am the one that says yes/no to tenant placement and authorize all repairs. They send me the description of what occurred and I say "yes I'll pay", or "no that is tenant responsibility". etc. PMs responsibility is to collect and disperse and fix under a certain $ amount that is far and below $600.
With that said, the vendors that the PMs use I've never looked at regarding the 1099 issue since all repairs were either by a Company (Inc) or were below the $600 range.
I have a situation now I think like Joe that warrants a 1099 because the company called in to do the work is not Inc. but a LLC and the work will be over $600. From what I understand I need to issue a 1099 to this company.
I also had work done on my rentals that exceeded $600 from a vendor that I hired myself and oversaw work to completion. They were also a LLC.
So in these cases, is a 1099 still warranted?
Thanks
My CPA made it clear, the only ones exempt are corporations = S-corp and C-corp.
LLC can be treated as a partnership vs. corporation....(whatever that means??)
So only some LLC are exempt if they are a corporation.
Daria, let us know how things work out. I found 3 vendors that I need to hunt down for 1099-misc. And yes, my cpa is charging me extra for 1099-misc.
Lesson learned. Never pay anything yourself. let you PM pay contractors, and then you don't have to deal with the hassle (...I think)
This kind of headaches makes me
#1 want a flat tax
#2 stop buying more real estate due to the headache of paperwork/tax prep
#3 grow a large enough portfolio so I can hire someone to do all the bookkeeping...all year.
I may not have to do the 1099 since the vendor has yet to schedule the access needed with the tenant. But in any case, since they are an LLC and it will be greater than $600, I will be issuing a 1099 "if" the work is done this year.
This is why I try to just also deal with companies (INCs) rather than LLCs.
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
Originally posted by @Joe Kim:

Originally posted by @Joe Splitrock:
@Joe Kim I didn't do 1099 for years and asked my accountant this year about it. He said yes that I need to be doing that. Then I looked at my taxes and there is a check box in part 1 of my Schedule E that specifically asks if I made payments requiring me to file 1099, indicating real estate investors need to do this. Then I read a NOLO book covering legal concerns for rental property owners and it stated I need to file 1099.
This topic is debated by accountants and the IRS refused to clarify, so it seems safe just to file them. The IRS can fine you $100 per 1099. Filing a 1099 doesn't cost you much of anything so we just decided to start doing it this year.
Also keep in mind that 1099 would need to be filed for property managers making over $600 per year from you. Not sure if you thought of that!
Bottom line is talk to your accountant about this and better safe than sorry.
IRS can fine me $100...per 1099. Guess what my CPA is going to charge me $95 per 1099! That's still better than getting audited. but still I need to see if I can do these 1099 myself.
I have never sent 1099 but as I understand it too late to file them for 2015 (maybe ok to e-file still). You could file them late, but I am wondering if that could draw more attention from the IRS than not filing at all? My understanding is you can get the 1099 forms from Office Max. I have found forms and software for under $50, so it seems this can be low cost DIY.
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