OT: 1099 vendors

  • Creator
    Topic
  • #166004
    jjm1181
    Participant

    Is it not true that 1099 vendors are for individuals who perform services for the company in excess of $600? If the payment is made to their business, then they wouldn’t qualify as a 1099 vendor correct? Or does their business type matter? I ask because I just got a call from a lady who performed some even coordinating for our company. We paid her company but she’s requesting a 1099. What am I missing here?

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  • #322801
    jeff
    Keymaster

    Only Corporations are exempt … I am an LLC and I get 1099s.

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    Jeff Elliott, CPA (KS)
    NINJA CPA | NINJA CMA | NINJA CPE | Another71
    #322802
    Anonymous
    Inactive

    Certain corporations are not exempt – like for legal services.

    Most other (non corporation) businesses get 1099s, with certain exceptions.

    I will try to find the source on the IRS website where I looked up this information for work.

    #322803
    Anonymous
    Inactive

    This is for '11 (I think it is the most recent one):

    https://www.irs.gov/pub/irs-pdf/i1099msc_11.pdf

    This is for '12:

    https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

    #322804
    katiekanton
    Member

    Also, you don't have to 1099 LLCs that have elected corporation tax treatment, although I don't know why anyone would choose that. I've never run across a company that had elected it, although I found LOTS who though LLC stood for “limited liability corporation” and they were exempt from 1099s. In my time I've had a few cuss me out for sending them one because “now they had to report that income”. [eye roll]

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    #322805
    mla1169
    Participant

    I used to send 1099's to all vendors even those who didn't need them (corporations). They can use them, not use them….either way I was covered. But yes, many companies can and do get a 1099.

    You should also have a W-9 on file for all vendors.

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    Massachusetts CPA (non reporting) since 3/12.

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