1. We purchase bulk salt from a sole proprietor. We use the salt for snow services that we provide to other businesses. Should the salt provider get a 1099?
2. The other is a tow company. We use them every time one of our vehicles breaks down. Should they get a 1099? They are also a sole proprietor.
You don't report Products. You would report the tow service, unless you pay by credit card. The use of a Credit Card falls under the 1099-K rules, which means the card company will report those amounts.
A 1099-MISC is the form any business sends anyone they pay to do a service who isn’t an employee. If you paid anyone more than $600 who isn’t an employee, you probably have to send out this form.
You don't report Products. You would report the tow service, unless you pay by credit card. The use of a Credit Card falls under the 1099-K rules, which means the card company will report those amounts.
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