1099 and taxes?

Yes it´s a 1099. remember if you have a Company you can deduct expenses for all 2011. resource: the tax club dot com

Does the company have to have a 1099 on file to send you tax info?

I will check out the site. Does anyone else have any experience here?

I'm not a lawyer/accountant, this is not business advice or a substitute for professional legal or financial services.

It's been my experience that no 1099 is issued to you (the marketing company) from them (the client company). You are selling the client company a service - just like a carpet cleaning company would sell you their service without the need for your business to provide them any tax forms. You are responsible for reporting your income on whatever tax forms are appropriate to your business type (LLC or S-Corp). They categorize the expense for hiring your company as an advertising/marketing expense. For example, if your company hired an outsourcer in the USA (like a programmer or web designer) and paid that individual over $600, you would likely need to give them a 1099. If you hired a graphic design company to make logos for you, you would not give them a 1099.

See Independent Contractor (Self-Employed) or Employee? to learn more.

However, if you are a sole proprietor or partnership (a person instead of a corporation), and the client company paid you as an independent contractor, they may be required to issue you a 1099 and you must submit a W-9 to them at the start of work. However, once you provide the W-9, it's their responsibility to get the 1099 to you. Either way, you still need to report the payment as income on your tax return Schedule C and it will probably be subject to self employment tax. As far as I know, it's their problem if they don't give you the appropriate forms whereas if you provided the W-9 and report your earnings correctly and honestly, you should be OK. (As an example, Amazon requires a W-9 when you join and they will cut you a 1099-MISC at the end of the year if you make more than $600 in commissions because an affiliate is technically a sales agent.)

See Instructions for *Form 1099-MISC (2011) to learn more.

The best advice I can give you is to read the IRS documentation and/or consult an accountant or tax attorney.

Thanks for the feedback. I didn't think most people would send 1099. I have received 1099 in other businesses and jobs but the 1099 was filled out before the work was done. Any other feedback?

I have never had a business send me a 1099 when they buy my services.

Thanks for all the help thus far. Anyone else have suggestions?

anyone else have experience with this?

I haven't yet gotten any 1099's yet for last year. It's a little early still. Normally, they start arriving the third week of January.

rolltide - It doesn't really matter if you receive a 1099 or not. In the United States you are required to report all income earned, regardless of whether you received a 1099 for that income. So if you provided $5,000 in consulting services, you need to report $5,000 in income (less allowable deductions), even if you did not receive a Form 1099.

Another issue that warriors will want to watch for is the new 1099-K form which credit card processors and third parties (think PayPal) are required to send out starting in 2012 (for income earned in 2011). Not everyone will receive a 1099-K (only people who earned more than $20,000 and had more than 200 transactions will receive a 1099-K), but I imagine there are more than a few warriors who will see this new form this tax season. Again, it doesn't really matter if you get a 1099 or not, as you should be reporting all of your income anyway.

Just my 2 cents...

I understand to report all income. Just wondering if most people receive 1099 from the people they do the work for.