Hi. We have a restaurant. We have a couple of musicians that I'm pretty sure we have to file 1099 because we just send them a check and it's over $600 a year. How about who cleans our restaurant and they have a company, attorneys, company that does our repairs? Do we need to send them a 1099 form too? Thanks
In a nutshell, exceptions apply>>>>Anyone you pay by cash or check over $600 in a year gets a 1099 unless they are a full corporation with INC at the end of their name., although legal corporations do get a 1099. You do give a 099 to an LLC, you do not give a 1099 to Intuit, Inc (as tempting as it might be. there is no penalty for issuing a 1099 to a corporation theta is exempt from getting one but Intuit will not respond to your W9 request for their tax ID)
Your payment to your lawyer might be under $600 that's why QuickBooks is not preparing 1099. For more Information about reporting on payments to attorneys, please see Box 14. Gross Proceeds Paid to an Attorney section in this publication: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf.
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