Do you and your customers comply with 1099 misc requirements

CITIZEN F16 · Sep 17, 2021

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?

Mud · Sep 17, 2021

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.

CarbideBob · Sep 17, 2021

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

Larry Dickman · Sep 17, 2021

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

Superbowl · Sep 17, 2021

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.

CITIZEN F16 · Sep 18, 2021

Superbowl said:
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.

Mud · Sep 18, 2021

CITIZEN F16 said:
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.

adh2000 · Sep 19, 2021

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

Search

Largest Manufacturing Technology Community on the Web

Search

Do you and your customers comply with 1099 misc requirements

CITIZEN F16

Titanium

Mud

Diamond

CarbideBob

Diamond

Larry Dickman

Titanium

Superbowl

Hot Rolled

CITIZEN F16

Titanium

Mud

Diamond

adh2000

Titanium

Similar threads