Do I have to report
income if the person who paid me doesn't file a W-2 or 1099?
Yes you do. The lack of a
W-2 or 1099 is no excuse for not reporting income. IRS auditors routinely review
bank statements and will assume all deposits to be taxable income unless you can
Third-party payer information supplied to IRS, such as W-2s and 1099s, are means
of allowing IRS to verify income received by payers. However, any income
received by taxpayers, except for the few types that are statutorily exempt from
taxation, are required to be reported as income.
This page was last updated:
Sunday, January 29, 2012