Stock Sale of Subsidiary to Third Party: What are the Reporting Obligations?
We sold the stock of a subsidiary this year to an unrelated third party. What is our reporting obligation for forms 1099 and 1042 for 2010? Are we required to report from January 1 to the date of sale? It seems that because the EIN of the subsidiary will now belong to the new owner as a result of the stock sale (not an asset sale), that the new owner would be responsible for all 1099 and 1042 filings for the year. If we both file forms for the same company/EIN, won't it create a problem with the IRS? Is this correct or have I missed something?
Payment Involving Hospital and Doctors: Who to 1099?
Several questions on here regarding DBAs and how to report payments made to the DBA. What is your opinion in a case where we are doing business with a hospital that wants us to cut checks in the name of indivisual doctors, but then send the 1099 for the payments made to all those doctors in the name and EIN of the hospital? It is our contention that if we issue a payment to an individual in this case that we must report those payments to the individual's name and SSN. Would you agree? I believe there is a distinction between these situations and true DBA set ups.
Vendors with Multiple Payment Addresses for the Same Vendor
Hi- my question is: we have certain vendors that have multiple payment sites (meaning AP might pay a certain invoices to a different address like a PO Boxes which might be in different states according to the invoice) for the same vendor. Do you report that payment to that particular state? The way our system handles it is that the paper forms sent to the recipient get consolidated with all invoice amounts for that specific vendor but when we generate our electronic file sometimes one vendor is in the file twice because there might be a state code attached to one payment and another state code attached to another payment but within the electronic file the address information for both the lines for that vendor is the same. I'm not sure how the system determines which state address to use in the file. Other times there is a state code attached to one line and no state code attached to the second line for the same vendor probably because the other payment was made to a state not participating in the Combined Filing. We have several issues like this and I want to make sure that we file it to the IRS correctly.
There are obviously a coupl . . .
Joint Payees: Who Gets the 1099?
My company sometimes make payments to indiviuals 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?
The general rule is that on . . .
Mid-year name change to corporation and need to correct 1099?
Situation: Vendor is paid twice a month throughout 2009 as an individual with a SSN on record. The vendor cashes the payments as is. At year end, 1099MISC is sent out with the vendor name and SSN. The vendor now calls saying the 1099MISC is incorrect and supplies new W9 for a corporation. Questions: 1. The payment was made to and cashed by the individual. Should I correct the 1099MISC to the corporation and now not report to the IRS (corp exempt-vendor is not med or legal) even though the payments show as going to the individual? 2. Does the vendor need to provide when the name change and status change occurred? I ask because if the name change does not apply to the whole year, would there be reporting for the time in 2009 that the vendor was not a corp, assuming over $600 was paid to the vendor during that time?
First, you always need to r . . .