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For Issuers of W-2s and 1099s |
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The question here is... Are you truly an "employer" (federally connected)? If not, you may decide to issue annual generic affidavits to those with whom you contract for labor or consulting, whether by the hour or by the job. The IRS evidently does not object to declarations of "income" written on any type of paper, as long as it can take in tax on that "income." All who insist on declaring themselves earners of "income" are free to use generic affidavits they receive from their non-"employers" in lieu of the popular [and misused] 1099-Misc.
Funny ... the Feds never prosecute the millions of felons who commit the annual crime of filling out information returns (W-2s and 1099s) on innocent people who never received "wages" (the highly specialized type of earnings defined by the tax law) or non-"employee" compensation from what isn't a "U.S. trade or business" (again, an entity with a very specific characteristic, also defined by the tax law and NOT applicable to most American companies or businesses, no matter how large or small). Instead, the IRS confines its punitive efforts to harassing people about whom information returns have been filed, which returns have not been acknowledged or rebutted, leaving themselves liable and punishable by law! (One woman we know has been filing both 1099s and W-2s upon herself -- from her very own personal companies, as advised by her tax professionals ... Stop the madness!)
For further clarification of what you can do about such madness ... Read more.
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