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

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edited 25 Apr '10, 16:37

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TaxQueries ♦♦
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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.

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answered 11 Jan '10, 13:34

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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.

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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.

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answered 22 Feb '10, 05:14

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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.

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answered 03 Mar '11, 17:33

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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.

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answered 08 Feb '13, 15:45

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Asked: 10 Jan '10, 23:39

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Last updated: 08 Feb '13, 15:45