How do I fill out my 1099 regarding occupation tax? 3 Answers as of June 14, 2011

I received notice regarding occupation tax a few months ago for past three years. I was not sure so I paid approx. 75 dollars each (as mentioned in the notice) for all three years. They also asked me to put total gross bill of receipts. I put all my 1099 amount that I received through my IT consultancy service (Sole Prop.). Now I got another notice with late fees and approx. around 1200 to 2000 for each year. Do I need to pay occupation tax even though I run an IT consultancy service as a single person doing 1099 contract?

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Dorot Law, PA
Dorot Law, PA | Datan Zvi Dorot
An occupation tax is generally a state-imposed tax, not a federal tax. I practice in Florida, where there is no such tax, so I recommend you resubmit your question stating specifically what state you are in so someone who practices in your state can assist you. It is never a bad idea to contact a local CPA and pick his or her brain on the matter. You can also try calling the agency that sent you that letter and see if they would waive penalties (which I have had some success in doing).
Answer Applies to: Florida
Replied: 6/14/2011
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
I do not understand what you mean by "occupation tax"? Is that a tax in a particular state, as it has no meaning for federal taxes.
Answer Applies to: California
Replied: 6/14/2011
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