Question

W-9

Forum|Forum|7 years ago
December 12, 2018
2 replies
0 views

Received a W-9 form from a INC. ( they alsochecked the C corporation box on the line 3)

Do I ned to send them an 1099- misc?

We paid them $650

Non-Product Specific

V

VivienJ

It's a delight to have you here in the Community, effort!

Thanks for providing brief yet concise and clear information! Allow me to address your concern about sending 1099-misc to your contractors/vendors.

You are required to give the Form 1099-Misc to any independent contractors or businesses whom you paid $600 or more in a tax year. They can be under a single-member limited liability company (LLC) or a one-person Ltd.

Corporations have high-level of administrative reporting, which is why the IRS exempts them from receiving 1099-MISC forms. Since the company you've paid considered their business as a C-Corporation (as evident in their Form W-9), you don't need to send them one.

There are a few exceptions that require them to receive this form though. Check them out below:

Attorney’s fees even if the lawyer is incorporated
Gross proceeds paid to an attorney (such as for legal settlements)
Payments to for-profit medical care providers

For more details about when to send a 1099-MISC, check out the Exceptions section in page 2 of this link:

2019 Instructions for Form 1099-MISC

I'd still recommend consulting with an accountant or contacting the IRS for further verification. They are still the experts in identifying the tax forms needed by a specific business entity.

You might also find this article helpful for future use:

How to Prepare a 1099 When You Employ Independent Contractors

These resources should give you all the general insights you need about this. But, if you ever need more help or questions, feel free to leave a response below. I'm always up to talk QuickBooks.

Have a great day!

E

effortAuthor

Thank you for the reply.

I have another non employee compensation payment to a xxx, INC.

Do I need to ask them to fill out a W-9?

qbteachmt

Level 11

"Do I need to ask them to fill out a W-9?"

When you first establish that you will be paying a party, you request a W9, you use it to enter what applies, and you keep it on file.

The penalty for not sending a 1099-Misc to a party when it was required:

The filing due date for other Forms 1099 & 1096 remains February 28th, 2019 if filing by paper, and April 1st, 2019 if filed electronically. The penalties range from $50-$530 per missed 1099 tax form, depending on how late the forms were submitted. The maximum penalty is a total of $1,064,000 for small businesses.

qbteachmt

Level 11

File their W9 and no need to report, if this would have been Box 7. Unless:

If this is Box 3 or 1, and this is not a Property Management firm for purposes of Box 1, yes, you still report it.

If this is a Medical Provider Box 6, Law Firm Box 7 or Box 14 = Yes, you report it.

If you paid by Credit Card, No, you don't report it.

It helps to go to the IRS website and read the 1099-Misc IRS instructions.

E

effortAuthor

Appreciate your reply.

For example:

A non- enployment conpensation payment of $750 to Brown Cilff, Inc.

Do we need to give them a 1099- MISC for this?

PreciousB

Level 6

Thanks for your prompt response, effort.

I'll chime in this thread to help you about filing a 1099-Misc form.

You are required to give a 1099-Misc form to any independent contractors or vendors whom you paid a nonemployee compensation of $600 or more. This compensation is reported in the Box 7 of 1099-Misc form.

The detailed information about Box 7 Nonemployee Compensation can be found on page 7 in the 2019 Instructions for Form 1099-MISC article.

If you have other questions about 1099-Misc Form or QuickBooks, please let me know. I'll be around to help. Have a great day!

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