The TIR Answer Center handles all kinds of 1099/1042-S related questions. Here are two questions added earlier today to our database (currently featuring from the past two years alone hundreds of questions with answers provided). However, we don't want you to just review them. Instead turn these relatively simple questions into a training tool of your own. Here's how:

First, see if you know the answer to each of the questions listed below. We hope you do - as these are some of the easier questions we receive. Second, test your team to see how they answer these questions. To add a further twist require each of them to provide the authority they rely upon to answer each question (they need to be able to link the facts and circumstances to the law - if they can't then your organization is in trouble if penalized or audited). Even better - time them. This will give you a better idea of the time and resources it takes for the members of your AP department to answer what are hopefully for you very simple questions.

Question #1:

My company sometimes makes payments to individuals to vacate a property in an efficient and orderly fashion. How is this reported if two individuals, with separate SSN's, are paid on the same draft? Do I just send the 1099MISC to the first person named or do I send a 1099MISC to each of them? If both, what amount do I report - the full amount to each individual or half to each?

Question #2:

If the payee name is what we have in the system, but the payee does not correct the payment (until the 1099MISC is received or they are audited by the IRS), but instead "endorses" it over to a different company, am I still"required" to correct my 1099MISC?