Is it necessary for Michael to report his income from contract work even without receiving a 1099-MISC?

It is essential for taxpayers, like Michael, to report all income they earn, regardless of whether they receive a 1099-MISC form. The IRS requires individuals to report their income for tax purposes because all earnings contribute to their total income, which is subject to taxation. Even if Michael did not receive a 1099-MISC, the income he earned from contract work is still legally required to be reported on his tax return. This ensures compliance with tax laws and helps maintain accurate records for the IRS.

Understanding that income reporting is a fundamental responsibility of taxpayers helps ensure that individuals do not overlook important sources of income, which could lead to underreporting and potential penalties or interest charged by the IRS. Therefore, it is crucial for Michael to acknowledge all his income from contract work to fulfill his tax obligations.