Hey @WonderWoman5. Sorry to hear about your troubles here. That’s never fun. However, I’m confused and hope we can have a further conversation in order not to confuse other sellers who might run across this thread in the future.
Forms 1099 are given to us as required so that we know how much income/sales to report to the IRS. I have filed taxes on my business now for over a decade and there has never been a requirement for ME to send Square’s 1099 to the IRS. Square already does that for me. The 1099 in my account is ONLY for my reference so that I don’t under-report sales income. To have over $7,000 in penalties and interest, that would mean that you under-reported your income. I guess I’m wondering how that could happen since you would be booking sales income daily/regularly and then using your P&L to report that same income to the IRS on your tax returns. Again, 1099s are ONLY used by the IRS to double-check that we have, indeed, reported all of our income as required by law. So, to clarify are you being penalized because (as you said) you did not file the same 1099 that Square filed for you? Or is it because your tax return severely underreported your income?
Also, you might want to check your email address on your account. I receive an email notice like clockwork every year once the 1099 is available. If you aren’t getting one, something else is going on which is most likely not Square’s fault. I’m wondering if those notifications that we all receive annually are in your junk/spam email box.
Hey @WonderWoman5. Sorry to hear about your troubles here. That’s never fun. However, I’m confused and hope we can have a further conversation in order not to confuse other sellers who might run across this thread in the future.
Forms 1099 are given to us as required so that we know how much income/sales to report to the IRS. I have filed taxes on my business now for over a decade and there has never been a requirement for ME to send Square’s 1099 to the IRS. Square already does that for me. The 1099 in my account is ONLY for my reference so that I don’t under-report sales income. To have over $7,000 in penalties and interest, that would mean that you under-reported your income. I guess I’m wondering how that could happen since you would be booking sales income daily/regularly and then using your P&L to report that same income to the IRS on your tax returns. Again, 1099s are ONLY used by the IRS to double-check that we have, indeed, reported all of our income as required by law. So, to clarify are you being penalized because (as you said) you did not file the same 1099 that Square filed for you? Or is it because your tax return severely underreported your income?
Also, you might want to check your email address on your account. I receive an email notice like clockwork every year once the 1099 is available. If you aren’t getting one, something else is going on which is most likely not Square’s fault. I’m wondering if those notifications that we all receive annually are in your junk/spam email box.
