any CPAs? is a referral fee taxable income?

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nafreed
Posts: 55
Joined: Mon Jun 25, 2007 4:48 pm

any CPAs? is a referral fee taxable income?

Post by nafreed »

Sorry for the off-topic post, just a quick question if their are any knowledgeable tax experts reading. A friend of mine was paid a referral fee for referring a customer to another friend's business. The fee was paid as a check for 300.00. Because it is under 600.00, must this money be declared as income?

Any info is much appreciated.

Again, I apologize for the off-beat post.
livesoft
Posts: 86076
Joined: Thu Mar 01, 2007 7:00 pm

Post by livesoft »

Yes.
tibbitts
Posts: 23716
Joined: Tue Feb 27, 2007 5:50 pm

not an accountant

Post by tibbitts »

I'm not an accountant but I think there is a difference between triggering a 1099 reporting requirement and the need to pay taxes. As far as I know you also also have to pay taxes on the $1 in interest you earned at the bank, even though you get no 1099 for it.

Paul
dpt01
Posts: 24
Joined: Sun Jan 27, 2008 9:26 am

Post by dpt01 »

from Section 61 of the Internal Revenue Code--

"gross income means all income from whatever source derived"

Lets say you find $300 dollars on the ground. That's income, and you're taxed on it.
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tfb
Posts: 8397
Joined: Mon Feb 19, 2007 4:46 pm

Post by tfb »

All income is taxable unless explicitly exempt. That even includes income from illegal activities like drug dealing and bank robbery.
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