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Posts Tagged ‘independent-contractors’

Question: No history dealing from collection agency?

Hello, i am just looking for some advise. about 4 weeks ago my parents recived a phone call at 730am from some one asking for my wife but in her maden name. my parents ask what the call was about and this gentle man claimed he is with the irs and it is about a 1099 form. My parents then called me right away and told me to call this guy. So i did first thing he ask was a ssn#, i did not have it. then i gave him a case #. Then he came back and said that your wife owes us 2900 now for a 5 year old capital one card, or else we are going to sue you for 5500. I told him i have no idea with this is about and i will have to contact her. He told me i have to pay him now or else. I was thinking he was a con. I did ask my wife and she said that had a capital one card, she did 5 years ago when she lived in Texas now we live in MN. We did get a letter from an attorneys office one week later. Thx tim

Answer: First, collectors are not allowed to call before 8:00 am. Next, they are not allowed to discuss the matter with anyone except the debtor (or their spouse in some states).

The IRS does not make collection calls for other companies. The person who called your parents first said they were with the IRS and then said that they were collecting for an old credit card, so they obviously are not legitimate. And, no legitimate company makes a demand for one amount and then threatens to sue you for double the amount if you don’t pay them NOW. Finally, in some states, collectors cannot make any threats regarding legal action, even if the collector is a lawyer.

If the letter you got from the attorney seems to be from the same person/group that you spoke with on the phone, you should contact your own legal counsel. Collectors are not allowed to misrepresent who they are and what they are calling for. You also have grounds for harassment because they called before 8:00 am and they spoke to your parents about your wife’s personal business.

FAF Advisors, Inc. Announces Financial Positions for Closed-End Funds

MINNEAPOLIS—-FAF Advisors, Inc. today announced the financial positions for the following closed-end funds for the month of July 31, 2010.

Stone Grove Apartments For Rent – Burnsville, MN

Question: Can I write these things off on my taxes?

I’m an independent contractor at a local gym (as a cycling instructor). I teach both freestyle classes as well as those from the company Les Mills. I purchase my own music in addition to the pre-coreographed playlists from Les Mills, and I’m thinking about Cyclocore for cycling tips that I can use in my classes. In addition, since cycling is a niche sport I buy expensive cycling outfits that can only be used for such. Basically, what I’m asking is – can any of this be written off as a deduction on my taxes?

Answer: This is a troublesome area. You use those items for yourself outside of your job. For a legitimate deduction, you would have to keep an accurate log of how many hours in the gym and how many hours outside..

Krasienko answers readers’ questions

We asked readers, if you were the city hall reporter for a day, what would you ask the mayor? Then we put those questions to Lorain Mayor Anthony Krasienko and here is the resulting reader-reporter Q&A interview with the mayor:

Question: i am using turbotax online and i need to do an amendment for a 1099-misc…?

turbo tax’s help is of NO help. it has yet to ask me for my non employment compensation that is reported on this 1099-misc. does anybody know what to do?

Answer: The 1099 income does NOT go on your return as other income if it's non-employee compensation. You'll need to fill out a schedule C or C-EZ, a schedule SE, and a form 1040.

If you've already filed for the year omitting this income, and have to amend, you'll have to file the amendment by mail - can't efile an amendment.

Ten Things You Should Know About 1099s

They're arriving in the mail now. Don't ignore them, or you could be buying trouble with the IRS.

Question: What state do I owe taxes from my 1099-R if I moved?

I recieved a 1099-R because I cashed out my pension early. I earned the money while I lived in Alabama – my 1099-R came from the Retirement Systems of Alabama. I did not get the money until I moved to Michigan. Which state is this money taxable in? Box 11 on the 1099-R reads AL. Do I have to pay taxes in both states?

Answer: If your 1099-R says AL, then it is AL.
There should be a spot on your MI form to remove the $ that you paid to another state.
If you do your taxes online, it should automatically adjust it for you.
You will only owe taxes in MI for the $ you made in MI, if you worked there in 2007.

Sacramento early birds get help filing taxes

In less than one hour Saturday, Donna McClish-Calimee completed something lingering on most to-do lists.

Question: If a small business did’nt report your income and you don’t file your taxes will they find out?

I work for a small Company fresh out of college, I made less than 20,000 this past year. I Live at home with my parents, i dont have many bills. I noticed we forgot to send in the official form A 1099 copy to the IRS reporting everyones income. There are only like 3 employees. I would like to know what would happen if i did’nt file my taxes. I could really use the extra money but i dont want to get in trouble.

Answer: You didn't mention if the company you worked for withheld any taxes from your check. If they did you already have paid the taxes and may be due a refund. And if the company didn't make regular deposits of those taxes withheld they would face fines and penalties, of which you would not be responsible.

However, you mention sending out 1099's, which is used to let the IRS know that a company has paid an individual as an independent contractor rather that an employee. Companies usually do not withhold taxes from independent contractors and you would be responsible for the taxes.

If the owner of the company files a return for the company then he would be listing the amount paid as salaries. The IRS may take note of the expense item on the company return and wonder why there are no collaborating W-2's to back it up. Which means that the company may get audited, and find out that you would owe the taxes.

Take Five, along with Matt & Meribeth, want to give someone a Valentine's Day makeover!

Send Take Five a letter and tell us why you or someone you know deserves a Valentine's Day makeover! The winner will receive a new outfit and image consultation from Meribeth VerHulst, of Younkers, and hair and make-up services from Matt Flora, of Matt Flora Hair Studio!

What's a Form 1099-G?