FORMS: 9.11 FORM 1099 NOT PROOF OF TAXABLE INCOME
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This form is useful as a handout during an IRS tax examination. It establishes a legal basis for the position that receipt of a form 1099 does NOT establish any proof whatsoever of "gross income" received.


Form 1099 Not Proof of "Gross Income" Received

"(a) Returns regarding remuneration for services

If - (1) any service-recipient engaged in a trade or business pays in the course of such trade or business during any calendar year remuneration to any person for services performed by such person, and (2) the aggregate of such remuneration paid to such person during such calendar year is $600 or more, then the service-recipient shall make a return...
" [26 USC 6041A]

(Both the above statute and 26 USC 6041, the two sections related to the filing of Form 1099, make no mention at all of "gross income.")

"(a) Returns regarding remuneration for services-
In general. If- (i)Any service-recipient engaged in a trade or business pays in the course of that trade or business during any calendar year after 1982 remuneration to any person for services performed by that person, and (ii) The aggregate amount of remuneration paid to such person during such calendar year is $600 or more, Then the service-recipient shall make a return in accordance with paragraph (e) of this section...
For purposes of this paragraph (a)(i) only, the term remuneration does not include amounts paid to any person for services performed by such person if the service-recipient knows that such amounts are excludable from the gross income of the person performing such services.
" [26 CFR 1.6041A-1 (proposed)]