Citibank is looking at a lawsuit from customers who believe they were misled by solicitations promising 40,000 American Airlines miles if you opened a bank account. The advertisements stated that “Customer is responsible for taxes, if any.” In reality, all of these customers were issued a 1099 for being rewarded the airline miles. This will give them a minimum tax liability of $350.
Many of my readers are people that owe tens to hundreds of thousands of dollars to the IRS. A $350 tax debt from an unexpected 1099 may not seem like a big deal to them. However, it brings up a good point about 1099 debts. Just because you aren’t a contractor, doesn’t mean that you don’t have other sources of income the IRS considers taxable. Do you rent any property? Did you trade any stocks? What about your investments.
You would be surprised at what people forget about come tax season. People even forget about contracted positions until they receive the 1099 in the mail. Other times, they do under the table jobs and are told that it will all be hush-hush. Then, they are shocked to find a 1099 months later. As with most problems, the best medicine for IRS issues is prevention. Keep track of every 1099. Consult a professional before making any financial decision.
If it’s too late and your 1099 IRS tax debt daunts you, you know you always have a friend at the IRS Hitman Team. For answers to your 1099 IRS debt concerns call 888-415-1337
or fill out the form
. Your 1099 mistakes don’t have to haunt you forever.
Labels: Tax Filing