Schedule C Companies Be Aware

If you're operating your business as a Schedule C company and reporting it that way on your individual tax returns be aware of two questions on the tax form. The questions follow one after the other and ask, first, if the owner is required to file 1099 forms and, second, if you did or will file them.

The IRS says the purpose of the questions is to remind owners they are required to file 1099s to any vendor providing $600 or more in services. Owners can answer "no" but if they are proved wrong later the answers to the questions will make it easier for the IRS to assess penalties of up to $500 per violation.