?

[sjrcpa]

Did the nonprofit issue any 1099s? Just not to him? How were the 990 questions about 1099s answered?

The nonprofit's procedures need to be tightened. They should be getting a W-9 from all independent contractors.before payment is made.

It is not really the independent contractor's responsibility to say "Hey, I need a 1099" although sometimes they will ask. The individual should have been reporting all of his income whether or not he received a 1099.

Is the contractor asking now?

[JamesTC]

?

[TaxGuyBill]

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@JamesTC wrote:

Do I just present the facts to the board president and leave the decision up to them.

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That is what I would do.

But I would also emphasize:  (a) if the contractor correctly reported his income, there will be no harm to the contractor and (b) if the contractor was not reporting his income, in my opinion you need to look at the books much closer to determine if there is anything else questionable, such as he was doing anything for his personal profit.

There could also be penalties for filing late 1099s, although the IRS may not assess the penalties.

[BobKamman]

Always protect client confidentiality.  When IRS starts rehiring, they may have enough people to check these message boards.  

[sjrcpa · Accepted solution]

@JamesTC nice move - deleting your posts.

Someone else could have learned from this, too.

[strongsilence]

Often, I have the same question.

[TaxGuyBill]

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@sjrcpa wrote:

@JamesTC nice move - deleting your posts.

Someone else could have learned from this, too.

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I agree. It feels like all of us wasted our time commenting on your question.

Personally, I avoid commenting on questions from people like you who just delete their posts.