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Thread: 1040 Reporting requirements? Personal checks redeemed in lawful money

  1. #1

    1040 Reporting requirements? Personal checks redeemed in lawful money

    I am hoping someone can weigh in on whether or not the unemployed natural person is ever required to report personal checks which have been given to them, said checks being subsequently redeemed in lawful money.

    I am redeeming checks in the $3k-7k range, mostly from homeowner types, but no one ever 1099's me or asks for any SSN or TIN or EIN or sends me any other type of reporting statement..

    Being that I'm not employed and am working as my self then I often wonder how one could be presumptively self-employed in their individual capacity. Wouldn't that require two separate individuals with corresponding duties and rights?

    An employee is actually considered a trustee in equity and the employer is the beneficiary. But if in trust law the sole trustee and sole beneficiary are one and the same individual then the titles merge and trust would extinguish...so somehow the self-employment thing does not click in my mind.

    Any thoughts are greatly appreciated,

    Ohio

  2. #2
    Quote Originally Posted by ohiofoiarequest View Post
    I am hoping someone can weigh in on whether or not the unemployed natural person is ever required to report personal checks which have been given to them, said checks being subsequently redeemed in lawful money.

    I am redeeming checks in the $3k-7k range, mostly from homeowner types, but no one ever 1099's me or asks for any SSN or TIN or EIN or sends me any other type of reporting statement..

    Being that I'm not employed and am working as my self then I often wonder how one could be presumptively self-employed in their individual capacity. Wouldn't that require two separate individuals with corresponding duties and rights?

    An employee is actually considered a trustee in equity and the employer is the beneficiary. But if in trust law the sole trustee and sole beneficiary are one and the same individual then the titles merge and trust would extinguish...so somehow the self-employment thing does not click in my mind.

    Any thoughts are greatly appreciated,

    Ohio
    If people are handing you checks, and not reporting 1099 that is great. You make your demand for lawful money by non-endorsing the backside of the checks.

    Some of the self-employed suitors find it beneficial to report with a 1040 Form rather than an IRS agent assessing by guess. Ideally though, if you could start working for cash only, that would be great too. In other words, since they are paying you the money anyway, and probably don't want any trouble about paying that kind of money without reporting by 1099 Form, they might just as well withdraw the funds unnamed and hand you cash, instead of a check.

    The only thing blocking that kind of logic is between their ears...

    For example, the conditioning about using the term "self-employed" seems to arise from the IRS Code using that term on the Reporting Forms. There might be good reason for all the mental gyrations about rendering goods and services to homeowners in return for the currency, but that is all handled in the non-endorsement special deposit of the paychecks you are talking about.

    As I write, this suggestion occurs to me. When a customer/boss hands you your paycheck ask if there is any reason why they will not please cash it for you? I understand you might not like that idea. So just don't do it or if people do not like it quit doing it. The law says for you to make your demand; so just do that.

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