1 . Carl is a mechanic that works full - time for a dealership . He helps out family members with their cars in the evenings . He has had many requests to help out friends as well . He realizes that if he starts to accept money for his services that he will have tax implications . Which of the following is not an implication that he needs to be concerned with ? a ) He must keep detailed records . As a sole proprietor , he will have to pay SE tax . C ) d ) He will have to issue 1099's to his customers . He will need to file a Schedule Cas a part of his yearly tax return