Question

Payments to independent contractors must be reported to the IRS if payments meet or exceed:

A. $600 for the year
B. $600 in the last 12 months
C. $1,000 for the year
D. $1,500 for the year

Answer 1

Payments to independent contractors must be reported to the IRS if the payments meet or exceed $600 for the year.

Step-by-step explanation:

The correct answer is A. $600 for the year.

Payments to independent contractors must be reported to the IRS if the payments meet or exceed $600 for the year. This reporting requirement is outlined in the tax laws to ensure that independent contractors are properly reporting their income and paying any applicable taxes.

For example, if a company hires an independent contractor and pays them $700 throughout the year, the company is required to report that payment to the IRS. However, if the payment is less than $600, the company is not required to report it.