1099 MISC with backup withholding

[sumit65536]

Hi All,

I am on H1B. I have a question regarding 1099 Misc. What happens if i get a 1099 Misc for which the taxes were backup withheld because the company didnt have my tax ID on record.
What happens if i dont report the 1099 in the tax returns. (They will already deduct 28% tax what more do I owe them ?)

I guess the IRS gets the info from the company (my name, address, income)
I know its not legal for me to get 1099 Misc.

Thanks in advance for the help.

[txh1b]

Hi All,

I am on H1B. I have a question regarding 1099 Misc. What happens if i get a 1099 Misc for which the taxes were backup withheld because the company didnt have my tax ID on record.
What happens if i dont report the 1099 in the tax returns. (They will already deduct 28% tax what more do I owe them ?)

I guess the IRS gets the info from the company (my name, address, income)
I know its not legal for me to get 1099 Misc.

Thanks in advance for the help.

And you want to do more illegal stuff by not declaring that income on the tax returns?

[sumit65536]

Thanks for the reply. Ok so I understand that not declaring the 1099 is not an option. I need to maintain the business relationship and I am not doing any work for the business. I might get the 1099 for trivial amount or for other conditions that mandate a 1099.

One feasible option that I think is possible is that I make a partnership with a US citizen and not do any work. Am I correct ?

Are there any other options ?

[txh1b]

You are not supposed to be involved in any kind of business activity other than a sleeping partner with investment and dividend returns on the money invested while you are on H1b.

If you want to be legal and follow the laws of the country, better not look for loopholes as this could come back and bite you real hard.

IRS and USCIS are departments that are unforgiving!

[sumit65536]

Thank you !