Is a 1099 Misc required?

[Gary2]

I would never recommend issuing a 1099 to a corporation unless it is required by law for some other reason.

Other than the cost of creating the filing, are there specific negatives to issuing a 1099 to a corporation that prompts you to say that? If the tax prep fee weren't an issue, is issuing one "just to have a good paper trail" a bad idea?

[JohnH]

A 1099 doesn't prove an expense - it just proves the issuer knew how to prepare a 1099.

[taxea]

I would never recommend issuing a 1099 to a corporation unless it is required by law for some other reason.

I would, only if there is no other document that would prove the expense

[JohnH]

I would never recommend issuing a 1099 to a corporation unless it is required by law for some other reason.

[taxea]

I don't see it as a medical expense...it is an ordinary and necessary business expense if the training and supervision is a service rendered to the TP therefore it is a business expense of a different catagory and still requires a 1099 unless the provider of the service is a corporation. Even though it is not a requirement to 1099 a corporation for the purpose of documenting the expense (if there is no invoice) I would recommend issuing a 1099.

[Roberts]

I always feel in questions like this that some sort of relevant information has been accidentally missed that is relevant to the case. For example, is your client clinically insane?

[anu31402]

Do I prepare 1099Misc?

My business paid office rent well over $10k last year. Am I still mandated to give my landlord (another corporation) a 1099 Misc or I'm covered by the last year repeal?

[Jesse]

That may be true, but I don't think it changes the character of the payment.

Yes, I agree and I don't know if it would be considered Nonemployee comp - No 1099 necessary or Medical payments - 1099 required. I think you'd have a justified argument for none needed. Or you could issue one anyway to play it safe

[Burke]

That may be true, but I don't think it changes the character of the payment.

[Jesse]

It is not a "medical" payment. It is payment for training....education. It would be the same as a new tax professional paying an EA or CPA who is a corporation for additional instruction in a field that they had more experience in.

Linda, EA

I'm not 100% sure, but I think in this profession the psychotherapist is required to have someone "supervise/train" them to maintain their licensing. A checks and balance system of sort - something like that.

[oceanlovin'ea]

It is not a "medical" payment. It is payment for training....education. It would be the same as a new tax professional paying an EA or CPA who is a corporation for additional instruction in a field that they had more experience in.

Linda, EA

[Kram BergGold]

I like Burke's point

The payment for traiining and supervision although to a medical provider is not a medical payment. So I think Burke has it right.

[Burke]

I am not so sure. Payment is made for services rendered by the therapist to the TP/business owner, and I would use 1099-MISC, Box 7, if the business was NOT a corporation. I have always been under the impression that medical payments were for entities like insurance companies, etc who actually pay amounts for medical treatments to providers. In this case, she is not being paid for services to patients unless I have misunderstood the post.

[Jesse]

I also would say yes, this would be considered a medical payment to a corporation.

[BOB W]

Taxpayer is a psychotherapist. She pays another therapsit who is incorporated for training and supervision. Would this be considered a medical payment to a corporation which requires a 1099 or something else which means a 1099 is not required?

YES....................