[quote=Hobie]I understand the no employer relationship but there is no recourse by the IRS? Just by producing a bogus 1099??
Even as a smaller government is better guy, I don’t agree that the IRS should be shorted in this manner.[/quote]
Ain’t this a role reversal. Ok, lets say I have an apartment building. I pay a pool service, a gardner, a painter, a carpet installer, and an attorney to file a few unlawful detainers every year. They all supply me with their SS number or EIN and I file 1099’s every year. I assume the information they give me is valid. All my responsibilities have been fulfilled.
Do the pool guy and the gardner and the painter, etc. all report all of their income? I have no idea. I know the pool guy and the gardner have residential accounts that don’t file 1099’s. The attorney does some DUI’s too, and I know he doesn’t get 1099’s for them. But they’re supposed to report all that income anyway.
Tax enforcement is tough. Either the IRS is given tools by congress which range from slightly burdensome to unreasonable for small and big businesses alike, or they don’t collect the taxes they’re charged with collecting. I don’t think there is a simple solution.
