1099 box 7 or 3

[BOB W]

An exempt org pays stipens to the elected officers. Should it be reported in box 7 or box 3?

[TaxGuyBill]

Shouldn't it be on a W-2, with taxes taken out?

http://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations:-Compensation-of-Officers

http://www.irs.gov/Government-Entities/Indian-Tribal-Governments/ITG-FAQ-%231-Answer-Is-the-income-from-a-stipend-reported-and,-if-so,-how-is-it-reported%3F

[BOB W]

This organization has been doing 1099s since it was started in 1981. Isn"t there any exceptions in this case? A safe harbor?

[TaxGuyBill]

Just because they've been doing it wrong for many years, it doesn't make it right.


On the other hand, you can see if it qualifies for the "safe harbor". However, even it you think it does qualify, I would start doing it correctly now.

http://www.journalofaccountancy.com/Issues/2012/Jul/20125528.htm

http://www.irs.gov/pub/irs-utl/irpac-br_530_relief_-_appendix_natrm_paper_09032009.pdf

https://www.workerstatus.com/530text.html

[TXEA]

If by officers, you mean the board of directors, then box 7 of the Form 1099-MISC.

If by officers, you mean individuals who are employees of the exempt organization, then this needs to be included in their Form W-2.

[BOB W]

Yes it was for Board of Directors, 7 of them. All were elected to the posistion. Some do actual work and some just hold the title. All get paid a monthly stripen of different amounts.