Is it necessary to submit a 1099-MISC to a C-Corporation that you have paid commissions to?
I've already tried...
Answers
About the Expert
I am a CPA and QuickBooks Certified Pro Advisor, with over 37 years of experience in tax preparation and accounting. I have owned a CPA firm, managed tax departments for other major CPA firms, taught tax courses at 3 colleges and Jackson-Hewitt, served as the IRS VITA Coordinator in Northeatern Ohio, and designed, supported and wrote the manuals/tutorials for a major tax preparation and accounting software company. I have never had a "negative" change on an audit in 37 years of tax preparation. View Profile
For reporting payment made in 2009, it is normally not necessary to report payments made to a corporation, whether it is a C or an S corporation.
There are exceptions:
1.) payments made for legal services (to attorney), whether to a corporation or not - reportable in Box 7 or 14, depending on the purpose for the payments
2.) medical and health care payments, reportable in Box 6
3.) fish purchases for cash, reportable in Box 7
4.) substitute payments in lieu of dividends or tax-exempt interest, reportable in Box 8
5.) payments by a federal executive agency for services from vendors, reportable in Box 7
These above payments are reported on Form 1099-MISC.
If, for example, you made payments to a vendor who provided you with materials or services (not legal or medical) last year and they are a corporation, you would not be required to submit a 1099-MISC to them. There is talk of this changing for next year.
Always have all your vendors complete a Form W-9, on which they state their type of entity, along with their name, FEIN, and address. Also, always keep good records on payments made to them.
Please login or register to rate this answer!