Friday, July 8, 2011

Can S Corpo issue 1099 insted of W2 to employee?

By law, if the owner/employee provides services, the payment for services MUST be a W-2. It cannot be a 1099-Misc. And yes, the IRS will eventually catch it and force a reclassification of the income, creating an even bigger mess. How would you like it if they counted the income twice?

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