Sponcer money..... 1099 ????

Signman · 07-31-2008, 10:35 AM

Carlos

What you are asking is a gray area. Having been self employed for over 20 years there is plenty of that to explore. Some of those will get you into a big bill with the IRS and State of NJ. And they do not play well!!

What you are thinking of is a way to avoid paying income tax on a bonus. If it is in the form of a check and there is an audit, the issuer of the check is going to state the truth. The check can be written out to your wife, kid, company, what ever but it was written as a bonus for you selling their product. If you are unlucky it could be expensive.

Look at Al Sharpton. A major public figure in NYC, NY State and at some level nationally. Doesn't pay taxes to the IRS for several years. Gets audited, goes to court and settles for much less than owed. His method works great if you owe enough that the savings minus the cost of accountants and attorneys is a profit. (although he could afford it)
A public figure getting press over this cannot be the only plus.

Can you stomach handle it! How big are your family jewels?

The best advise is to search out a good accountant with integrity. A former IRS auditor or someone who has had a lot of exposure to audits and auditors would be good.

Hey you can always do what you please and answer for it later! Play dumb and deal with the phone calls. paper work, threats, public embarrassment and fines. Hell you can be another one of those who the IRS ripped off!!

Just kidding! What you are describing is not a good idea!
Jack has been around for years and knows the ins and outs!
Julie does not give out bad advice!

07-31-2008, 10:35 AM	#17
Signman Senior Member Join Date: Oct 2003 Location: Lower Slower Delaware Posts: 535 Likes: 22 Liked 269 Times in 99 Posts	Re: Sponcer money..... 1099 ???? Carlos What you are asking is a gray area. Having been self employed for over 20 years there is plenty of that to explore. Some of those will get you into a big bill with the IRS and State of NJ. And they do not play well!! What you are thinking of is a way to avoid paying income tax on a bonus. If it is in the form of a check and there is an audit, the issuer of the check is going to state the truth. The check can be written out to your wife, kid, company, what ever but it was written as a bonus for you selling their product. If you are unlucky it could be expensive. Look at Al Sharpton. A major public figure in NYC, NY State and at some level nationally. Doesn't pay taxes to the IRS for several years. Gets audited, goes to court and settles for much less than owed. His method works great if you owe enough that the savings minus the cost of accountants and attorneys is a profit. (although he could afford it) A public figure getting press over this cannot be the only plus. Can you stomach handle it! How big are your family jewels? The best advise is to search out a good accountant with integrity. A former IRS auditor or someone who has had a lot of exposure to audits and auditors would be good. Hey you can always do what you please and answer for it later! Play dumb and deal with the phone calls. paper work, threats, public embarrassment and fines. Hell you can be another one of those who the IRS ripped off!! Just kidding! What you are describing is not a good idea! Jack has been around for years and knows the ins and outs! Julie does not give out bad advice! __________________ Frank Ferrucci I/SA 1271 "Be Thankful for the Gifts You are Given"