
Originally Posted by
Melonie
$600 per YEAR is the threshold on independent contractor earnings below which the 'payer' is exempt from IRS regulations requiring them to file a 1099 form in the name of that independent contractor. Thus, theoretically, a girl could keep bouncing from one phone sex outfit to another before her earnings with any one outfit exceeded $600 and no 1099 forms would appear in her mailbox next February.
However, IRS regulations DO require that such a girl must file a tax return and report her TOTAL income from all sources if that TOTAL figure exceeds $600 in a single year, with or without 1099's. That's why your accountant wanted pay stubs for lesser amounts.
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