From Forbes, Robert W. Wood provides 5 New Years resolutions to help keep the IRS from bothering you. His first two resolutions are particularly relevant to independent contractors — paying attention to your Form 1099’s and keep taxes in mind before signing agreements. Taxes are always one of the primary concerns when engaging with independent contractors — federal and state governments are particularly interested in engagements when payroll, unemployment and other taxes are not being paid. If you are and independent contractor or engage with independent contractors, make sure your New resolutions include paying close attention to how taxes are being handled and reported. Robert Wood’s recommended resolutions include:
“1. I Will Pay Attention to Each Form 1099. It’s almost time for these little tax reports to show up in your mail, so get ready. Each one bears your Social Security Number and will be matched to your tax return. Pay attention to them—the IRS sure does.
2. I Will Consider Taxes Before Signing Agreements. Leases, purchase agreements, settlement agreements, employment agreements, independent contractor agreements, and more. You name it, they have tax consequences. They needn’t be mega-transactions for the tax dollars to be significant. Consider taxes before signing, since that’s when you can still affect changes…”
Read the full story at New Years Resolutions That Actually Keep The IRS Away.