If I have a client pay me more than $600 in a year, should the client (assuming it's a business) issue a 1099-MISC to my S-Corp for the fees? If so, does anyone do this? The Instructions for the form say specifically accountant's fees, but I can't imagine anyone actually doing this. Thoughts?
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"Congress has spoken to this issue through its audible silence."
Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"? -
I haven't taken the time to check the instructions, but do you have to issue 1099s to corporations or just to non-incorporated businesses and persons?Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut". -
Not to corporations
Unless the corporation is an attorney or a medical professional.Jiggers, EAComment
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Answer is Yes
I don't know why an accountant would be exempt from receiving a 1099 unless he is a corporation or LLC.
I prepare 1099s for a number of my customers, and as some of them have paid me more than $600 I issue a 1099 to myself.Comment
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thanks everyone
Since I'm an S-Corp, looks like I dodge the bullet. For Sole Props though, that seems like a process."Congress has spoken to this issue through its audible silence."
Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?Comment
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If the LLC does not elect to be treated as a Corporation you would need to issue a 1099, correct?Originally posted by Nashville View PostComment
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I agree. Professional fees to an attorney, doctor or other professional are included. Payments to corporations are included only if they are for medical, health care, legal or fishing activities.Originally posted by Jiggers View PostComment
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LLC are always a problem for me as I have to dig into what form it has taken. If other than a Corporation, they get a 1099.Originally posted by Jesse View PostThis post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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Entity Status
Jesse, you could very well be right as far as I know. But for LLCs, the form of entity should be transparent as far as my clients are concerned.Originally posted by Jesse View Post
I don't know whether the state has anything to do with it, but in Tennessee an LLC is taxed as a corporation for corporate tax purposes regardless of how they checked the box.
As a preparer, I should know the entity status of my clients, but I shouldn't be expected to know the status of all his payees.
If my client were audited, and the auditor wanted to know whether we had chased down every 1099-recipient as to entity status, I would simply tell him they are all corporations under state law, hand him the list of payees, and invite him to follow up. If it's too much hassle for us, you know darn well it's going to be too much of a PITA for the auditor.Comment
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