Report all your income, even if you don’t get official tax documentation

October 8, 2011

It's called an income tax. That means the IRS get a piece of just about every type of money you get.

For most filers, that means wage income.

October 17 countdown 9 That's great for the Internal Revenue Service because it gets a copy of workers' W-2 forms. Tax agents can then easily compare the amount reported on the tax document to what's on the taxpayer's Form 1040 (or 1040A or 1040EZ0).

The IRS also gets copies of the many other statements detailing taxpayer income.

Sometimes, though, individuals get taxable money that isn't documented by third parties.

This is frequently the case for self-employed folks.

A payer isn't required to issue you a 1099-MISC if your earnings are less than $600. But you're still required to report those payments of $599.99 and less.

Don't ask for tax trouble: It's tempting to let these smaller payments slide. C'mon, how will the IRS know about that loot?

Do you really want to find out the answer to that question?

Money, especially in bank accounts, is traceable. So are PayPal transfers.

You can be sure that if the IRS ever audits you, the examiner will want to know exactly where your money came from and, more to the point, why you didn't report it.

The ease with which income can be under reported or completed omitted from a return is why small business Schedule C filers are prime tax audit targets.

Professions where individuals routinely receive tips also tend to get extra attention from the IRS.

So don't make matters worse for yourself by not reporting all your income, regardless of whether you did or didn't get a 1099.

Don't miss the Oct. 17 deadline: Did you miss the first filing tip designed for tax procrastinators looking to meet the drop-dead filing date? Find it at this special blog page, Countdown to Oct. 17, 2011.

You also might find these items of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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