And if you don't file quarterly, they hit you with heavy fines - because they are going to assume they know your revenue, unless you tell them otherwise.
I would report it, just for the simple fact that you don't want to get yourself into unnecessary crap over such a small amount. If they hadn't asked for your SS# or you got paid in cash...different story...but since neither of those things happened, then best to be safe and not ever have to worry about it coming back to bite you in the ass.
how much income are we talking about? Also did you set up a company? if u set up the company correctly, i would report the income so you can claim the expenses. 1. Phone 2. mileage 3. Cost of Goods Sold. 4. Legal fee's to set up company 5. Rent 6. Depreciation 7. etc Depending on how the company is set up, your net Loss will be a deduction against your income putting you in a lower tax bracket and getting a bigger refund.
Dude, report it and file the paperwork. You do not want to mess with the IRS. A while back they held up my refund because of some misinformation they had on my filing. It was a nightmare to deal with. You can't ever get anyone on the phone over there. I went to their office and stood in line for 2 hours only to be told they couldn't me. It's worse than dealing with AT&T. It took about six months of registered letters to get it sorted out. Turrible.
