Questions about 1099's - Individual/Sole Proprietor

[woodywho5517]

Hey all. I'm a long time lurker (about two months) and first time poster.

Absolutely all of my income is 1099 income as an individual/sole proprietor. Long story short, I have no real overhead, as I am an internet marketer. All of my money is basically commission based. I get checks, Paypal deposits and direct deposits from about 9 different sources. Now, I know that I am required to have 6 months worth of pay stubs to give to the trustee (or attorney if I get one), but there are technically no pay stubs, at all. Most of the checks I get are just that, straight checks with no "summary" to tear off. Others are deposited into Paypal and others are direct deposit.

I have contacted all of them to see if they could send stubs, but the response I get from most of them are "we can send an excel file that lists the amounts we paid to you".

As a strictly 1099 individual, what is recommended in place of pay/wage stubs that a salaries employee presents? I looked at various local and federal laws, but never saw a precise answer. I don't expect one here, either, but any pointers would be much appreciated

Thank you,
Adam

[Never_Again]

Tax returns will tell the story of the last two years income...

Bank statements, listing deposits, should do for 1099 income.

[woodywho5517]

Tax returns will tell the story of the last two years income...

Bank statements, listing deposits, should do for 1099 income.

I hope so. I mean, all I can give the trustee is what the companies provide to me when I ask for the closest thing to a payment stub. I will also call the court tomorrow to see what they say.

I have looked through the forum quite a bit, but I haven't seen too many topics on filing Ch. 7 with only 1099 income to show for. All of my $2,800 (average of last 6 months) monthly income is in this form.

[DaisysMom]

I have the same problem. My attorney told me to make monthly records showing income received and expenses so I have the net profit to show for each month.

I have mileage, internet costs, phone bills, etc. You must have some expenses to running your business.

He said as long as your gross income matches your 1099 there should be no problem. Just keep the bills to show if needed...internet, phone, etc.

D....

[Tromploi]

I own my own business and am in your same situation. We filed a 7 this morning, we THOUGHT we were filing a 13 until yetserday, the atty said we were only several hundred over the means test, so we tweaked a few things and we're going for a 7 (the MAIN thing is don't forget to deduct what you should be putting away for quarterlies, we don't put $ away because we live on it, but IF we did,,,,it changed the means test ALOT). We are putting our 2007 and 2008 taxes into the plan, it's not exempt but the IRS will negotiate a payment plan with us separately. Anyway, all I gave them to verify income was bank statements. I have 17 IC's that work for me, so my deposits can look HUGE each month (30K or so), but I highlighted all of my deposits as well as all of the checks I wrote for payroll, whatever was left was considered my income. Then I deducted my expenses, office supplies, gas, phone etc. and what was left of that was my net. No problem with the atty's office.
Good luck to you!