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r/tax • … • u/ChefDell

1099s issued to my company for deposit holdings

Hey guys, wanted to see if anyone had any experience with my situation.

So I started a sole proprietorship last year and to keep things simple, part of my job is to collect deposits for my clients, then paying out those deposits once the date passes. In order to collect these deposits, certain entities would require my businesses W9. Now I’ve been issued about a dozen 1099s from these companies, when in reality, I was just holding the money and paying it out at a later date and making only a fraction of the total. From the research I’ve done, some advice says that as long as the total amount of money in those 1099s is less than the total gross I report to the IRS, it shouldn’t be too much of a problem. But I checked and I am getting pretty close, so wanted to see if I might be looking at any headaches down the road.

Thanks!

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