Floyd Mayweather Jr. is a wealthy world champion boxer, well known for being business savvy, apparently even at strip clubs. The boxer sent an IRS Form 1099 to a strip club to report that he dropped $20,000. The Daily Mail reports that Mayweather Promotions LLC sent the form to the Hustler Club for $20,000 spent on strippers. The money was mostly cash tips for dancers, so the club claims it didn’t see the money paid to the ‘independent contractors.’ Still, the club must report it.
More than a few observers are probably wondering how they too can start issuing IRS Forms 1099 to turn the tax tables on someone. Issuing a Form 1099 is something businesses do to verify that payment was made, and to help support tax deductions. Of course, by issuing a Form 1099, you are generally also sticking the recipient with paying taxes on the item. In that sense, some IRS Forms 1099 may conceivably be issued with a kind of punitive intent.