Requirement to issue 1099

[David760]

Has there been a change the requirements to issue 1099 Misc to Corporations in the last few years?

I thought there was no requirement for 1099's to be issued to Corporations but it seems, lately, a lot of my corporate clients have been receiving them.

Before I put the blame on the person preparing the 1099 I would like to verify what the current requirement is.

Thank you in advance.

[Gretel]

No, it hasn't changed but there is talk to change this.

[BHoffman]

David - what harm can it do? If you add up all of the 1099s issued to your Corps and it is more than their reported revenue, perhaps they have a problem. Otherwise, does it make a difference?

Also, are they Corps or LLCs? LLCs are supposed to receive 1099s.

[David760]

No harm. I just wanted to get the facts straight.

My client is a corporation. They have been in business a good number of years and this was the first 1099 the corporation received and they questioned why.

Thank you for the reply.

[thomtax]

David - Probably half of the people issuing 1099s are like you, me and many others. They think that they know what to do, but are not always sure. So it's better to err by doing more than required than to not do something required, figuring that if you don't need it you can just ignore it.

LT

[S T]

Doubt

When in doubt, issue 1099 form. T/p as of now, is not penalized for issuing a 1099 in error, however, could be penalized for NOT issuing a 1099 when they should have.

Sandy