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A 1099? Really?


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We just dropped one of our biggest rooms... they want the band and everyone that works for the band (sound and lights) to fill out a 1099 for tax purposes. This is not something anyone in the band wants to deal with. It is simply not worth it to us. So, we politely parted ways.

Have any of you had to deal with this? What did you do?

I wonder if they ask their plumber to fill out a tax form? What about the guys that plow the parking lot? Why is it that they feel the need to treat a band like this instead of as they do for any other contractor?

Thoughts?

 

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Pretty common for heavily booked clubs. Not sure how strict, but if they are claiming the bands as a business expense, then they have to. It shouldn't be a big deal for your band. If you don't run it as a business, then you can claim it as a hobby, and as long as you have expenses that are equal to or greater than the 1099 amount, then you won't be paying any more on April 15.

 

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A 1099 is for contractors, not for paid employees.  I'm sure most of those other guys are getting 1099s too.  If not, they should be.

Is the really the first time you've been hit up with a 1099?  Any business that doesn't 1099 the money he shows going out to independent contractors then has no way to deduct that expense from his taxes.  

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If you make over $500 from a client, promoter, etc., then they're required to send a 1099 receipt of wages to you for tax purposes at the end of the year. In order for them to do that, they need you to fill out a 1099 form if you're going to sub-contract for them. If it's going to be a situation where you're going to make less than $500 doing work for them for the year, they don't have to do that.

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If they don't file a 1099 on you then they cannot deduct the money that they pay you which would hold them to pay the taxes on it.

 

If their plumber submits an invoice as a business then they don't need to 1099 him. But if they "hire" him as an independent contractor then they do.

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Mutha Goose wrote:

 

 

We just dropped one of our biggest rooms... they want the band and everyone that works for the band (sound and lights) to fill out a 1099 for tax purposes. This is not something anyone in the band wants to deal with. It is simply not worth it to us. So, we politely parted ways.

 

Have any of you had to deal with this? What did you do?

 

I wonder if they ask their plumber to fill out a tax form? What about the guys that plow the parking lot? Why is it that they feel the need to treat a band like this instead of as they do for any other contractor?

 

Thoughts? 

 

Are you sure you want to hear what most of think on this one?

Getting mildly indignant about a venue that conducts their business completely on the up and up (i.e.,issuing you the appropriate tax reporting forms) - because they won't make it easy for you and your bandmates to steal is a pretty slimy approach to life. 

I compare you position on this to the slimeball I knew in college who got pissed at his roommates when they wouldn't help him shoplift, swap price tags/barcodes, sneak into venues by opening fire exits, etc.   If you get paid in cash - and choose not to report it - that's your call.   But getting pissy because folks who do conduct their business legitimately is downright slimy.

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SpaceNorman wrote:

 


Mutha Goose wrote:

 

 

We just dropped one of our biggest rooms... they want the band and everyone that works for the band (sound and lights) to fill out a 1099 for tax purposes. This is not something anyone in the band wants to deal with. It is simply not worth it to us. So, we politely parted ways.

 

Have any of you had to deal with this? What did you do?

 

I wonder if they ask their plumber to fill out a tax form? What about the guys that plow the parking lot? Why is it that they feel the need to treat a band like this instead of as they do for any other contractor?

 

Thoughts? 

 

 

Are you sure you want to hear what most of think on this one?

 

Getting mildly indignant about a venue that conducts
their
business completely on the up and up (i.e.,issuing you the appropriate tax reporting forms) - because they won't make it easy for you and your bandmates to steal is a pretty slimy approach to life. 

 

I compare you position on this to the slimeball I knew in college who got pissed at his roommates when they wouldn't help him shoplift, swap price tags/barcodes, sneak into venues by opening fire exits, etc.   If you get paid in cash - and choose not to report it - that's your call.   But getting pissy because folks who do conduct
their
business legitimately is downright slimy.

 

 "Are you sure you want to hear what most of think on this one?" i've been lurking here forever and you and a couple of others are the only ones that comment on this topic all the time. trust me you do not represent most.

god bless you for paying taxes on your beer money from the pub. aren't you guys honest americans. rock bands- doing blow, doing chicks, drinking booze and oh yeah- running home and doing their taxes from the night before.

seriously- have you ever paid someone in cash to work on your car or do sidework on your house?

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SpaceNorman wrote:


Mutha Goose wrote:

We just dropped one of our biggest rooms... they want the band and everyone that works for the band (sound and lights) to fill out a 1099 for tax purposes. This is not something anyone in the band wants to deal with. It is simply not worth it to us. So, we politely parted ways.

Have any of you had to deal with this? What did you do?

I wonder if they ask their plumber to fill out a tax form? What about the guys that plow the parking lot? Why is it that they feel the need to treat a band like this instead of as they do for any other contractor?

Thoughts? 

Are you sure you want to hear what most of think on this one?

Getting mildly indignant about a venue that conducts
their
business completely on the up and up (i.e.,issuing you the appropriate tax reporting forms) - because they won't make it easy for you and your bandmates to steal is a pretty slimy approach to life. 

I compare you position on this to the slimeball I knew in college who got pissed at his roommates when they wouldn't help him shoplift, swap price tags/barcodes, sneak into venues by opening fire exits, etc.   If you get paid in cash - and choose not to report it - that's your call.   But getting pissy because folks who do conduct
their
business legitimately is downright slimy.

DAMN! Judgmental much? I'm completely shocked at this. Excuse me while I bow to your awesomeness and righteousness.

So, please tell me Mr.. Perfect: how does, "..so we politely parted ways..." become "pissy"? How do you interpret, "...it is not worth it to US..." as me being "...indignant about a venue..."?

As to you calling me a slimball because I asked a question... I don't think I need to type my response, but even you should be able to figure out the sentiment.

I have been performing for over 30 years. This is the 2nd or 3rd time in all of that time that someone has asked for tax info from me, which is why I asked the question... to find out how common this is to other people. Yeah, I can see how wanting to know more makes me a slimeball. :manindifferent:

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RoadRanger wrote:

 

 

Just to be clear the 1099 is only required if the receipient of the money is NOT a corporation or LLC. If the band is a Corp or LLC they just need an invoice or receipt from it to legally pay you.

 

Very interesting and useful chunk of info right there...

I still maintain that if your band goes "legit" and becomes a business, it's worth talking to a lawyer about what to do for taxes and what not. The cash spent upfront to get the proper advice is probably worth it in the long run to know you're above the law line.

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I think it's safe to say that all of us are going to be seeing more and more of this.   Times are changing.  Businesses are having their feet held to the fire in terms of reporting.   The IRS is agressively scrutinizing businesses that operate in what have traditionally been "cash" industries to ensure they're collecting all the revenue that is legally owed. 

Be prepared.  If you're not receiving 1099's for your gigs today ... sooner or later you will be!   More and more venues that never issued 1099's to bands in the past are starting to these days.

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I get 1099's every year from my agents, and I have received them from individual clients at corporates. I played in one club for two years and they issued a 1099.  I don't know if I ever got one from a bar-I don't think so.  A friend of mine was recently auditied and they not only wanted the 1099's he issued, but w9's as well.

Walking away from a gig because they want to 1099 you means you weren't charging them enough to pay your taxes or you don't want to pay them.  Is there any other reason?

I spent a lot of years mostly playing music, thinking about playing music, or trying to play music, and I didn't make much money. Things have changed for me, and the amount of tax revenue I contribute is these days is, well, incredibly messed up. That's my opinion, so I don't begrudge anyone who thinks that 50.00 from the club is all theirs. But when you start getting several hundred dollars for a gig, you kind of realize that no one is going to pick up your tax bill. And if you only make 100.00 a night in a club once a week, that's still 5k a year, and the club does want to deduct that expense regardless of if they are skimming the till or not.

I agree with spacenorman that things are getting tighter.  I actually voted for Obama, even though I knew that he was going to go after tax dollars the same way he went after terrorists. He's coming for your money with drones baby, so be prepared. Keep records of everything, learn about the tax laws, and don't spend Obama's money. Either that, or filch your ass off, and hope the man don't come knocking.

 

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