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.