1099-MISC Reporting Guidelines and Resources 2020

As we tend to receive questions related to Form 1099-MISC, here are general guidelines in order to assist you with the accurate filing of Form 1099-MISC.

REPORTABLE PAYMENTS

For payments made in the course of your trade or business (including not-for-profit organizations), payments in the amount of $600 or more (unless otherwise noted) related to the following items should be reported:

Services performed by independent contractors (or other non-employees of your business); Prizes and awards (does not include amounts paid to employees); Rents; Royalties ($10 or more); Legal services performed; and Any person from whom you have withheld any federal income tax under the backup withholding rules (regardless of the amount of the payment). RECIPIENTS

Generally, amounts paid for the above items to individuals, sole proprietors and partnerships should be reported. Payments to tax-exempt organizations and corporations (C or S Corporations) are exempt.

Whether or not a 1099 should be issued to a limited liability company (LLC) will depend on how that company is classified for tax purposes. If treated as a single member LLC that is disregarded or as a partnership, payments are reportable. If treated as a C or S Corporation, payments are exempt.

EXCEPTIONS

All payments of at least $600 to attorneys should be reported, even if the attorney is a professional corporation.

INFORMATION NEEDED TO FILE

Recipient information (i.e...