1099 MISC - Always need a biz license?

dog8food · #1 (**permalink**) 03-26-2015, 12:12 PM

I got audited here in New Mexico. I only had 2 W-2's and 1 1099-MISC. I got the 1099 from doing a contract job promoting a product for a week. So, the tax office in my state called me and told me I must have a business license since I filed a 1099. Why is this?

Wnhough · #2 (**permalink**) 03-26-2015, 08:07 PM

Quote:

Originally Posted by dog8food

I got audited here in New Mexico. I only had 2 W-2's and 1 1099-MISC. I got the 1099 from doing a contract job promoting a product for a week. So, the tax office in my state called me and told me I must have a business license since I filed a 1099. Why is this?

Not necessarily, it’d depend on what biz you are performing. A 1099 only indicates that you are an independent contractor and your employer will not be deducting taxes that is entirely your responsibility, and this is a heads-up to the IRS that you will be owing them.

dog8food · #3 (**permalink**) 03-27-2015, 05:30 PM

Quote:

Originally Posted by Wnhough

Not necessarily, it’d depend on what biz you are performing. A 1099 only indicates that you are an independent contractor and your employer will not be deducting taxes that is entirely your responsibility, and this is a heads-up to the IRS that you will be owing them.

Thanks. Seems like it's too late now. Guess I'll have to get a biz license and fill out some CRS stuff.