Hey guys,

I'm in desperate need of some help, my business made 1.5 mill in revenue last year and 80% of it was paid out to contractors. I basically act as the middle man between a Payee, the payee hands me the money I take about 30% and then give the remaining amount to the client.

Also, I used a third party payment processor, so I would send them a wire, upload batch of payments for them to send out and they would handle it. How would this work into the whole scenario?

I paid about 400+ international and US citizens in 2011 this way. They all have sent me in their w8s(for international) and w9s (for USA) forms.

I plan on using Home and Business turbo tax software because I am the only owner of the LLC. How do I go about listing all of these payments as write offs in turbo tax, or listing them properly so I don't have the IRS barking up my ass wondering where that 1.5million went.

Should I total all the payments for each contractor and add them into turbo tax as an expense?
Example:
Description Amount
Total Payments for John Doe $890.00
Total Payments for Jerry Doe $5,389.50


I do plan to file 1099s for the W9 forms(USA citizens) that made $600+ in 2011, do I have to file anything for the W8s?


Thanks so much!