Quote Originally Posted by TaxGuru View Post
the difficulty in reconciling the tax years.

Since 1099s are calculated on a calendar year basis and many corps use other fiscal years, the IRS computers can't do a proper matching of income between 1099s and 1120s.
They got smarter with Form 1099-K, where any fiscal year can be accommodated. It wouldn't be that hard to do the same for 1099-MISC, after all even for the little guys, Quickbooks could easily produce totals by month and pop them into an annual tax form. What I can't figure is whether 1099-K must be issued to a corp. I see the word "person", and I know that sometimes that is defined in the tax code as including certain entities, and sometimes not.

That still leaves another question: if the issue is fiscal vs. calendar years, then why are there exceptions to the 1099-MISC exception for attorneys and medical service providers that are corporations? Are they precluded from using fiscal year tax reporting (I don't recall ever seeing that).