If you pay anyone over $600, IRS states it is mandatory to issue a 1099 MISC to that person. This IRS link explains the importance of filing this. this is a requirement embedded in IRS code and Turbo Tax wants to make sure you complied with the regulation.
You are responsible for what you report in your return but Turbo Tax wishes to ensure that you are in compliance with IRS regulations.This is something that is overlooked by business professionals but it is something that can come back and haunt you. IRS scrutinizes self-employment returns more than any other category of personal taxation. Issuing 1099 MISC to contractors for more than $600 of work is an area of grave concern to the IRS.
Edited 02/17/2020 11:01AM
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