I-9s for 1099 Recipients

[SunTaxMan]

At one of the Gear-Up seminars this year, the speaker mentioned "good practice" in the Tax Preparation office is to ask clients who have contractors to require I-9 completion for all independent contractors, as well as employees.

If I remember the rationale, it was so that IF IRS would ever reclassify contractors as employees, the I-9s would be completed and on file.

I don't remember the speaker saying, or even hinting, that INS is enforcing, or even hinting at enforcing, I-9s for 1099 recipients.

Comments?

SECOND ISSUE. This same speaker recommended issuing 1099s to ALL contractors, not just those who cross the $600 threshhold.

Comments?

[SunTaxMan]

I am surprised.....

No one is going to even comment on either suggestion?

[zeke]

The same rational can be used to suggest 1099 to corps because one may be improperly formed, or disolved...

I suspect that banks report 1099-int info under $10 even tho not required.

I will make a reasonable attempt to follow the law & regulations, but I refuse to become paranoid.

[MAMalody]

The I-9 is not an issue. You do what is required. If not an employee, don't do it.

On the 1099Misc for all whether over $600 or not, I recommend that to my clients. While not required, I simply think it is easier to do them all instead of try to sort them out an it adds a "little" validity their deduction for contractors. These are for my Schedule C clients, I don't do parts and corps. Also I seldom have a Schedule C that grosses more that $150K.