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Posted by Allan Martin on February 27, 2008, 2:30 pm
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> On Wed, 27 Feb 2008 07:55:21 EST, Benjamin Yazersky CPA
>
>>> More specifically, if someone wants to comment on the specific service
>>> I am trying to pin down: web site development. My question involves
>>> purchasing a custom web site from another party - is this a purchase
>>> of a product or a service? In this case, the web site developer does
>>> all of the work as a strictly defined independent contractor who meets
>>> with the client, learns about the business, then works independently
>>> to create a custom web site for the client, finally delivering the
>>> completed product (HTML files, graphics, etc) to the client.
>>>
>>If in doubt, issue the 1099.
>>
>>>From your description, I'd say the 1099 should be issued.
>>And check your state rules, they may want a copy of the 1099.
>
> Benjamin:
>
> I hear what you guys are saying and I always play it conservative.
> But, I know the web guy (close friend) has a bigger issue - none of
> his clients send him 1099's. He'd like to nail this properly and not
> create an inconsistency. For me, I have a similar issue with another
> vendor type of that I need to pin down after this one.
The fact that the clients do not send a 1099 is their problem, it is
certainly not your friends problem. This is a non-issue. It is up to the
taxpayer to report his taxable service income. The non-receipt of a 1099(s)
should not factor into the amount reported.
>
> Is there a publication that describes what a "service" is in detail? I
> remember reading grimy details of something on-line similar back when
> I had a Corp and there was a question of whether I was a PSC or not. I
> found an on-line IRS resource - forget where - that had the details
> right down to recent letter rulings on the issue. (Turned out "not a
> PSC" based on a very fine point I found that was acceptable to my
> CPA). But, somewhere out there there was a pub or IRS data store that
> had very detailed information on the rules and rulings.
>
> Is there something like that out there for 1099's?
>
> --
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--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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