Do you and your customers comply with 1099 misc requirements
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  1. #1
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    Default Do you and your customers comply with 1099 misc requirements

    Since we are mostly anonymous I figure I can get plenty of honest answers. I personally believe most businesses are not sending 1099's to everyone they should by IRS rules. I receive one once in a blue moon and I never send one out. To my understanding pretty much anyone a business pays $600 or more to in a year for goods and services should receive one. If everyone sent them McMaster would need a huge warehouse to keep them in.

    I thought I clicked to post a poll and the opportunity did not arise. How can I delete this and start over with a poll?

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    I send 1099s to every supplier that qualifies and isn't exempt. Corporations are exempt. Send a W9 request to anyone you aren't sure about.

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    Always.
    Best not to flirt with the rules.
    If you do get audited and are trying your best to play fair the agents are actually very nice to deal with.
    Heck they found some stuff and The IRS wrote me a check with interest. Big surprise.
    Bob

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    I believe Mud is correct, Everyone except corps and over $600 gets one. I just leave it up to my accountant anyway.

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    You have to file a 1099 for every "person" you pay more than $600 to.

    That is because a person you write a check to, say "John Smith", can take the check to your bank show his drivers license and cash it against "your account." Then it never goes through his account and IRS can not track it even if they subpoena his bank records.

    If you write a check to "John Smith Machining Company" it can not be cashed at any bank. It can only be deposited into that company's business account.

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    Quote Originally Posted by Superbowl View Post
    You have to file a 1099 for every "person" you pay more than $600 to.

    That is because a person you write a check to, say "John Smith", can take the check to your bank show his drivers license and cash it against "your account." Then it never goes through his account and IRS can not track it even if they subpoena his bank records.

    If you write a check to "John Smith Machining Company" it can not be cashed at any bank. It can only be deposited into that company's business account.
    It has been a while but I had times where a bank would not cash a check for a non customer. My issue was I did not trust that it wasn't a rubber check.

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    Quote Originally Posted by CITIZEN F16 View Post
    It has been a while but I had times where a bank would not cash a check for a non customer. My issue was I did not trust that it wasn't a rubber check.

    That's what I'm finding as well. Seems most banks won't cash a check drawn on their own bank unless you have an account there, I believe that's so that they have recourse against you in the event the check doesn't clear. Which is exactly why you went to that bank to cash it in the first place, so you would be sure it would clear. There are no more friendly banks.

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    Pretty sure it’s only services, say labor, that needs to be 1099’d. Not goods. I can buy a dining room table from my neighbor for $750 and I don’t need to 1099 them at the end of the year.


    Sent from my iPhone using Tapatalk


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