We are providing FREE consultations via PHONE or VIDEO conferencing for your safety during Covid 19 emergency. Please feel free to call us if you have any with questions! 877-788-2937

1099 tax problems

GAO report says noncompliance with 1099-Misc reporting requirements contributes to the tax gap [GAO-09-238]:

Mike Habib, EA Tax Relief & Tax Problem Resolution

A “significant problem” may exist regarding the extent to which third party payers fail to submit required Form 1099-MISC information returns, the Government Accountability Office (GAO) said in a report released on Feb. 27.

According to GAO, for tax year 2005, 8% of some 50 million businesses with assets under $10 million submitted the form, but IRS cannot say how many of the remaining 92% of businesses were required to report payments and failed to do so. “If even a small share of the businesses that did not submit a 1099-MISC should have, millions of 1099-MISCs could be missing with significant amounts of unpaid taxes by payees.” GAO said.

The report noted that various impediments may stand in the way of Form 1099-MISC compliance, “including complex reporting requirements and an inconvenient submission process.” IRS compares what payees report on their tax returns with what payers report on Form 1099-MISCs, but the agency does not pursue all mismatches its computers discover, GAO said.

IRS does not systematically collect information on the causes of mismatches or whether they could be prevented,” GAO added.

The report is available at http://www.gao.gov/new.items/d09238.pdf

Get tax relief, IRS Tax Help and resolve your tax matters by contacting the tax firm of Mike Habib, EA at 877-788-2937 or online at myirstaxrelief.com

Client Reviews
Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike!April S.
Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him!Joe and Deborah V.
Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation!Marcie R.
Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied!Marshall W.
I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends.Nancy & Sal V.
BBB Accredited Business
Trust Link
California Society of Enrolled Agents
Enrolled Agent
Contact Information