Why Subcontractor 1099s Don’t Cancel Legit Expense Deductions
When you pay subcontractors but didn’t issue a 1099-NEC, here’s what matters: 1. Deductibility under § 162: Under IRC 162, any ordinary & necessary business expense is deductible if you can prove the payment—by check, bank record, or reliable reconstruction (the “Cohan Rule”).Not issuing a 1099 doesn’t eliminate your right to…
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July 8, 2025
