Any income received is reported to both you and the IRS on your W-2s and 1099 forms, with a few exceptions. We are flooded with tax forms this time of year, including 1099s from brokerage accounts, local banks, CDs, and retirement accounts. Even payments received through third-party payment processors like PayPal or Venmo for goods and services must be reported on a 1099-K when a certain threshold is met.