Legal Question in Tax Law in Pennsylvania
1099 Reporting Requirement(s)
Is it permissible for a company doing business with independent contractors (IC) to make deductions on behalf of the IC and transmit deduction amount to a 3rd party in payment for a loan? If so, is the deducted amount reportable on
the IC's 1099?
Asked on 9/02/99, 3:36 pm
2 Answers from Attorneys
Lawrence Graves
Coolidge & Graves PLLC
Re: 1099 Reporting Requirement(s)
Yes, you can deduct; yes, it is reportable just as if received directly by the IC.
Answered on 9/02/99, 6:22 pm
MYRON LEWIS
MYRON LEWIS
Re: 1099 Reporting Requirement(s)
Why would you make tax payments on behalf of an IC? By doing so, he will probably be treated as an employee (Form W-2 required and Soc.Sec. tax, too!)!! Bad idea!!!Let him pay in his own taxes!!
Answered on 9/03/99, 2:11 pm
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