IPSOS sent out an email today that advised. " a blank 1099 form states that you DO NOT need to file taxes for money earned from total shops with IPSOS (earnings were below $599)."
I am not a tax professional but my understanding of the tax law is that we do need to file all earnings whether or not they are over or under $599 for a particular company.
So I am just reminding people to check with your tax professional or do the advising yourself if you fill out your own taxes on this piece of advice that was given by this msc.
Please feel free to correct me if I am wrong on this.
Professional tax preparer here. IRS requires you to report all income from every world-wide source. Employers do not have to report income less than $600 to IRS or employee. IRS will probably never know about an additional income less than $600 but if they had a way to know, you would be responsible for taxes and penalties. IRS can audit a return for 3 years and longer if they have evidence of fraud.
Just remember if you decide not to follow the rules and get caught it can be very bad for you. Not to mention that it might end up with higher scrutiny on your entire tax return. I have never been audited but I did once have a mailed/phone inquiry about something. Even that small issue which occurred due to one of my 1099's being misreported by the company, was such an overblown experience I NEVER want to have to go through a real audit. It's worth it to me to pay up and not risk that...anyway I prefer not to cheat anyone including the IRS.