Comments on: Who gets a 1099? http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/ Financial Management Consultant for Creative Agencies Tue, 31 Jan 2012 17:51:17 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Kelly Totten http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-255 Kelly Totten Tue, 31 Jan 2012 17:51:17 +0000 http://www.crackerjackaccounting.com/?p=709#comment-255 I view cable and alarm service providers as similar to telephone which is explicitly not issued a 1099 per the instructions. Additionally, 1099s are meant to report compensation to individuals to ensure they include income on their returns. They are also reviewed in employment audits to ensure that you didn't treat someone as a contractor who was really an employee (to get out of employment taxes). A simple rule of thumb..if you could hire the services to be performed by an employee (or multiple employees), then you need to issue a 1099 to non-corporations. If you can't, it's probably not a box 7, non-employee compensation service. i.e. You couldn't hire employees to provide cable service, so that's not a 1099,non-employee compensation event. You could hire someone on your payroll to clean your office, so that is a 1099 event. Make sense? **Disclaimer: This answer is opinion based on general experience. A tax professional can provide advice for your specific situation. I view cable and alarm service providers as similar to telephone which is explicitly not issued a 1099 per the instructions. Additionally, 1099s are meant to report compensation to individuals to ensure they include income on their returns. They are also reviewed in employment audits to ensure that you didn’t treat someone as a contractor who was really an employee (to get out of employment taxes). A simple rule of thumb..if you could hire the services to be performed by an employee (or multiple employees), then you need to issue a 1099 to non-corporations. If you can’t, it’s probably not a box 7, non-employee compensation service. i.e. You couldn’t hire employees to provide cable service, so that’s not a 1099,non-employee compensation event. You could hire someone on your payroll to clean your office, so that is a 1099 event. Make sense?

**Disclaimer: This answer is opinion based on general experience. A tax professional can provide advice for your specific situation.

]]> By: Rose http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-254 Rose Tue, 31 Jan 2012 15:28:56 +0000 http://www.crackerjackaccounting.com/?p=709#comment-254 Regarding Vern's question - if those merchandisors or cable providers or alarm servic providors were LLC's taxed as partnerships would he then have to issue a 1099? Regarding Vern’s question – if those merchandisors or cable providers or alarm servic providors were LLC’s taxed as partnerships would he then have to issue a 1099?

]]> By: Kelly Totten http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-253 Kelly Totten Sat, 28 Jan 2012 23:42:12 +0000 http://www.crackerjackaccounting.com/?p=709#comment-253 1099, box 7 is for nonemployee compensation...i.e. independent contractors. It is not for the purchase of merchandise, telephone or similar. You would not send to the vendors you mentioned. Types of contractors typically receiving a 1099 are: professional service providers like bookkeepers, attorneys, accountants, and business consultants. Also cleaning services, people who perform maintenance services, moving services, etc. **Disclaimer: This answer is opinion based on general experience. A tax professional can provide advice for your specific situation. 1099, box 7 is for nonemployee compensation…i.e. independent contractors. It is not for the purchase of merchandise, telephone or similar. You would not send to the vendors you mentioned. Types of contractors typically receiving a 1099 are: professional service providers like bookkeepers, attorneys, accountants, and business consultants. Also cleaning services, people who perform maintenance services, moving services, etc.

**Disclaimer: This answer is opinion based on general experience. A tax professional can provide advice for your specific situation.

]]> By: Vern http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-252 Vern Sat, 28 Jan 2012 22:02:22 +0000 http://www.crackerjackaccounting.com/?p=709#comment-252 I am a restaurant owner new to filing 1099. We have so many different people in and out doing work and providing products that are not technically employees, I am so confused what applies and what does not. I understand the whole has to be $600.00 thing. Do I need to file 1099 to our food, beverage, and linen vendors? Insurance, cable, phone, internet, security cameras, water softner service, alarm service, advertisers? My list can go on and on. Please help. Thanks! I am a restaurant owner new to filing 1099. We have so many different people in and out doing work and providing products that are not technically employees, I am so confused what applies and what does not. I understand the whole has to be $600.00 thing. Do I need to file 1099 to our food, beverage, and linen vendors? Insurance, cable, phone, internet, security cameras, water softner service, alarm service, advertisers? My list can go on and on. Please help. Thanks!

]]> By: Kelly Totten http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-243 Kelly Totten Wed, 01 Jun 2011 14:40:53 +0000 http://www.crackerjackaccounting.com/?p=709#comment-243 It depends on your specific situation. My understanding is reimbursable expenses (you pay them for actual utilities, etc) do not need to be included on the 1099. However if it's just in your lease agreement that your rent includes $50 towards utilities, etc, then you would need to include it. I have not found a definitive link addressing this specific issue. **Disclaimer: This answer is opinion based on general experience. A tax professional can provide advice for your specific situation. It depends on your specific situation. My understanding is reimbursable expenses (you pay them for actual utilities, etc) do not need to be included on the 1099. However if it’s just in your lease agreement that your rent includes $50 towards utilities, etc, then you would need to include it.

I have not found a definitive link addressing this specific issue.

**Disclaimer: This answer is opinion based on general experience. A tax professional can provide advice for your specific situation.

]]> By: Joe http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-242 Joe Wed, 01 Jun 2011 13:53:01 +0000 http://www.crackerjackaccounting.com/?p=709#comment-242 Does anyone have a definitive link defining what is included in rent in box 1? For example, if I have to pay taxes, insurance and utilities to the landlord, do I include all payments I make to my landlord as rent? Thanks! Joe Does anyone have a definitive link defining what is included in rent in box 1? For example, if I have to pay taxes, insurance and utilities to the landlord, do I include all payments I make to my landlord as rent?

Thanks!
Joe

]]> By: Kelly Totten http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-209 Kelly Totten Tue, 25 Jan 2011 16:29:34 +0000 http://www.crackerjackaccounting.com/?p=709#comment-209 Guy, Request a W9 from them. There is a line specific to LLCs and how they are taxed: http://www.irs.gov/pub/irs-pdf/fw9.pdf When in doubt, just send the 1099. Guy, Request a W9 from them. There is a line specific to LLCs and how they are taxed: http://www.irs.gov/pub/irs-pdf/fw9.pdf

When in doubt, just send the 1099.

]]> By: GUY http://www.crackerjackaccounting.com/2010/01/who-gets-a-1099/comment-page-1/#comment-208 GUY Tue, 25 Jan 2011 16:00:32 +0000 http://www.crackerjackaccounting.com/?p=709#comment-208 How do i determine if a LLC company is taxed as an S corp, or C corp and thus does not need a 1099? How do i determine if a LLC company is taxed as an S corp, or C corp and thus does not need a 1099?

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