thanks!!!


thanks!!!
Last edited by missenvy; 03-19-2013 at 01:59 PM.
It's a small amount. But since it is "off" the IRS may somewhere down the road, look into it.
Under my own taxes I put 'Internet Sales'. But because of the 1099's, yes employers will be able to see the 1099 info - 'SM/Streamates' whatever you put out can be visible.
I put the 1099 info in the proper info. And then rest that I had no 1099's for, I put under hobby/misc. income, whatever it was - I need to pull it out again and look. (oopsie if that will fuck me over later - if so we are in the same boat!)
Melonie is really our SW tax guru, I'm sure she'll see this and will be able to weigh-in on this subject more than I can. I've only filed twice and this shit still confuses me.
Last edited by HaydenBlue; 07-13-2012 at 05:56 AM.
Basically the IRS receives a tax return from you (the taxpayer) and bunch of 1099s and shit from companies and it takes a while but its all run through a computer but eventually if they dont match up it triggers the computer to generate an audit. Not all audits are big scary things. Some are just letters stating- we found a discrepancy. You reported xyz- we found jkl to be true so you now owe this much with additional interest or penalties.
IF you put something in the wrong place, they generally wont move it for you. They will move it to right place. I mean they will ADD it to the right place, causing the tax to go up, but the generally wont REMOVE it from the wrong place, when they do so. So if you do get a letter, or if in this case your sister, gets a letter saying they made changes to her prior return, you can either research tax laws and attempt to file a corrected return on your own, or pony up and pay a professional accountant to do it.
Either way its going to cost you interest, penalties, fees, the new tax and whatever the accountant charges.
(Also I dont think the name of the company has much weight on the actualy tax return but I could be wrong -such as if you use SM or Streamate- what caught my eye was the op saying she used the 15% catagory rather then the 30% one- that is a big deal)





detailed answer to your duplicate post can be found in the Dollar Den





The IRS will audit you if you are recorded having made more money on 1099s (combined if there is more than one) than you claimed. The IRS will audit you if you take deductions you are not allowed to make, or ones they suspect you made that you weren't supposed to. You should immediately go to an accountant and get your taxes revised should those be true. You or your "little sister" are not the only ones who underreported your income I'm sure. Which is annoying because now everyone who gets a 1099 from STREAMATES LLC will be heavily watched for suspicious activity like underreporting, secret purchases of hidden assets, and excess deductions I'm sure.
Regardless, I don't think anyone should try to hide what they do from the IRS if you get 1099s. The IRS knows who those companies are. But if may be to your or your "little sister"'s advantage to file as something like a Consultant, so that you are taken more seriously when it comes to renting, buying assets, and doing anything business-related. You would also be better off getting an EIN in lieu of a SSN, creating an LLC and DBA, trademarking your stage name if you plan to do this long time, and getting a good accountant, all for business purposes should anything go wrong.
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