I am a taxpreparer and I see alot of individuals come in with a Misc 1099 with box 7 nonemployee compensation marked. They are worried because they are not self-employed but because of their status as illegals they get paid cash as if they were self-employed. On my side I file them with a Sch C or C-ez but no deductions. What can I advice them or should I give them the document that allows IRS to make that determination. The problem, with that, is then the employer would be notified and they may get fired. Please advice since I get asked alot.
PDALVA -
I am not aware of specific information you can provide your clients. I would suggest contacting the IRS helpline: http://www.irs.gov/businesses/small/article/0,,id=161104,00.html
NicoleD | Former Moderator | 1/7/2011 - 12:42 pm
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