Ellensburg, WA asked in Tax Law for California

Q: Do I need to file a W9 if I did a favor for my dad at the business he owns and he gave me some money via a company check

In the beginning of 2020 my father asked me to help do some clean up in his new warehouse at the business he owns. I was not hired as an employee and did not fill out any tax paperwork I was just only there to help out and my dad always gives me a bit of money for it. At the end he had the company give me a check. I asked if that was okay because the work was not directly for the company it was a more of a favor because he is my dad. He told me not to worry about it.

Now his company is being dissolved and the receiver handling the company is asking people for my personal information so he can send me a 1099. I was under the impression that I should not be receiving any tax paperwork since I was not employed by the company.

My father is now telling me to simply ignore the receiver and that once the company is fully dissolved after 2020 taxes are filed it will no longer be a problem. I am concerned this will come back to me and end up getting me in trouble but I do not know

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1 Lawyer Answer
Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: Do the W-9, or risk an audit by the IRS for failure to report income.

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