Other than the payments made to attorneys, accountants, etc, is it only payments to C corps that are not required to be reported on a 1099 MISC or would S corps and LLCs be included in that as well? My understanding has always been that it would only be C corps but last year one of the vendors to whom I had sent a 1099 said that all corps were excluded (in ordinary circumstances).

asked 10 Jan '10, 23:39

Carol's gravatar image

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edited 25 Apr '10, 16:37

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TaxQueries ♦♦

The IRS insteuctions state payments to corporations (other than attorneys) and make no distinctions between C and S corporations. LLC's would fall under that exception only if taxed as a corporation.I have noticed a trend in companies issuing 1099's to everyone regardless of type of corporate status just to cover themselves.


answered 11 Jan '10, 13:34

PStampley's gravatar image

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On page 1 of the 1099-MISC instructions, payments made to a corporation generally are not reportable, unless they meet one of the exceptions on page 2. A S corporation is still a corporation.

I would respectfully disagree with PStampley that payments made to an LLC fall under that exemption. An LLC is an LLC, regardless of how it elects to be taxed, so I do not believe that payments to an LLC would be automatically exempt.


answered 12 Jan '10, 15:03

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I'd agree with Tom on the second part of his post - it matters not how the LLC has elected to be taxed, they are still NOT a corporation and I think they still get a 1099.

(12 Jan '10, 20:49) EAgent

I always understood that when the IRS determined that corporations were generally exempt from receiving a 1099, the intent was to include all entities that were pass-through entities. So anything other than a C corp would not be exempt. But you are all correct - that is what the instructions say and there is no differentiation between types of corporations.

(13 Jan '10, 02:13) Carol

Great points - I'll have to look at the LLC issue again

(14 Jan '10, 21:34) PStampley

I am with Tom on this one - the issuer has NO IDEA how the LLC has elected to be taxed so a 1099 goes.

(03 Mar '11, 17:55) EAgent

IRS requests all LLCs are to receive a 1099 for they may be partnerships, C or S corps or disregarded entities. I advise all my clients to get W9s on all LLCs and send 1099s. Then they can rest easy they are in compliance in the ever changing world of taxation.


answered 22 Feb '10, 05:14

dianeoffutt%20EA's gravatar image

dianeoffutt EA
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I advise my clients to get a W-9 before paying for any services regardless of the entity. With a W-9 on file then it will be easy to identify 1099 receivers.


answered 03 Mar '11, 17:33

CPAHISPANO's gravatar image

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The W-9 has a place to designate whether an LLC is an S or C corp, Pship, Individual, or Trust. So the question still remains whether the LLC that checked the box C Corp gets a 1099.


answered 08 Feb '13, 15:45

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P Alice
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Asked: 10 Jan '10, 23:39

Seen: 18,219 times

Last updated: 08 Feb '13, 15:45