michnnnrick
Junior Member
What is the name of your state? California
I own a small S Corp, and have individuals that I have shared revenue with. I typically 1099 them when tax season comes. One individual is asking me to pay him my net cost to him (for instance, his revenue share is $50,000, and he would rather take $25,000 cash). I don't have a problem doing that, and paying the taxes on my higher revenue figure, but is there a legal reason that would keep me from doing this?
Thanks!!! I need to know before sending in my 1096 today!
I own a small S Corp, and have individuals that I have shared revenue with. I typically 1099 them when tax season comes. One individual is asking me to pay him my net cost to him (for instance, his revenue share is $50,000, and he would rather take $25,000 cash). I don't have a problem doing that, and paying the taxes on my higher revenue figure, but is there a legal reason that would keep me from doing this?
Thanks!!! I need to know before sending in my 1096 today!