Is an Advance Payment on an Equipment Purchase 1099 Reportable?
We currently have a vendor that works for our company and provides log/haul services, which we have determined would be 1099 MISC reportable. If then our company was to issue the same vendor an advance on a equipment purchase, would this advance be reportable as well?
The primary issue you are facing here revolves around the status of the equipment purchase. In short, is it related to the log/haul services being provided by the vendor, and, if so, are the goods/equipment neccessary to the provision of the services.
Payment Carries Over into Next Year: How do I Report?
We have several logger contractors that provide hauling services for us, therefore we issue them a 1099 Misc at year end.
Our loggers sometime request an advance in their payment from us to purchase equipment. Most of the time the advance is recovered during the current year. Sometimes this advance is not all recovered during the current year and carries over into the next year.
Should our company be adjusting the logger's 1099 for this amount that is not recovered during the current year so the 1099 is not overstated? Or once a reportable payment is processed this is considered cash based and the recovery of the advance doesn't matter?
How to Report When Paying a Death Beneficiary on an Employee Who Passes Away?
Could you explain how 1099's should be handled when paying a death beneficiary on an employee who passed away. Our company pays 1 months salary to the beneficiary when an employee passes away. Should the TIN number be the beneficiary's? A check was issued to the Estate of using the employees's SS# but the beneficiary said they can not cash the check made out that way since there was not a will or estate.
If an employee dies during the year, you must report the accrued wages, vacation pay, and other compensation paid after the date of death. There are a couple of issues here and the first is associated with whether the payment was made in the year of death or not.
Settlement Payment and Question as to Identity of Functional Beneficiary
A settlement payment was written to the insured (a corporation) and their lawyer, who I will refer to as Joe. I sent the 1099MISC to Joe, with the total settlement payment shown in box 14. I then heard back from Joe's law firm saying the 1099MISC should be made out to the law firm, not the individual.
I am confused on how to handle this. One the one side, your advise was as follows: "Almost always the reporting follows the payment (only in a select few unique situations such as those involving "middlemen" and/or attorney/settlement payments). Thus who you write the check out to is who you should report to. In general what has happened is that you have written the check (or otherwise generated a payment) in the ordinary course of your trade or business for services provided by the person and TIN named on the W-9 you collected prior to issuing payment. Thus, if you issued the check directly to the individual then you will report to that individual. (This happens all the time for example in medical service payments when doctors have the check cut to them but then turn around request the clinic they work for be issued the form 1099)." So I feel I should still report to the individual, Joe.
On the other hand, the law firm seems to be the functional beneficiary of the payment. So there may be a case for this as well.
1) How do you decide how to report in this case? 2) If you decide to go with the functional beneficiary (assuming that is a valid choice), what documentation should be collected to alleviate any issues that might come from a future IRS audit, where payment name would differ from the name that was reported on the 1099MISC (in this case, Joe)?
There are a couple issues here, but let's deal with the biggest first and then answer all of your questions as follows:
People Paid to Vacate Property. How to Report if at all?
We have a program whereby occupants living in a defaulted property agree to be paid to vacate the dwelling in an efficient (deadline) and legal manner (no damages, theft, etc). The amounts vary, but are always over $1000.00. Is this really a service provided? Is there an argument that this should be reported in box 3?
The program always involves a contract described as "Relocation Assistance Agreement". Within the document, the payment is described as "representing relocation assistance" for vacating the property on or before a specified date.
Does this definition allow for a better argument towards Box 3? Or Box 7? I am torn on this one. Three separate IRS agents, when guestioned about this type of payment (I originally called them with IRS Levy questions), all verbally stated that they believed Box 7 was correct. But I have had 5+ calls/year from tax accountants saying that they believe the payments are misclassified and should be corrected to Box 3.
Do I Report a Change of Ownership on a Non-Qualified Annuity?
Hello, I'm looking for guideance on if 1099R reporting is necessary regarding a change of ownership on a NonQualified Annuity (not part of an employer plan) or a cash-value whole life insurance MEC (Modified Endowment Contract)? My research so far indicates that an ownership change for either a NQA or MEC contract can create a taxable event, that is the earnings, or gain, portion of the contract becomes taxable. What I need to know is "is it reportable"?
Here is what you need to know:
Is an Unincorporated Membership Association a Corporation or a Parnership for Reporting Purposes
Our organization received a W-9 with the following written in the organization box: Unincorporated Membership Association. Do we code this type of organization as a Corporation or a Partnership?
Via the process of elimination, and the information you have provided, we know that...
the organization filling out the W-9 is not a corporation and thus that it is reportable - assuming the applicable reporting thresholds have been met for the year and that no other possible exceptions to reporting are in existence.
What is an S-Corp and is it 1099 Reportable?
We would like to know what is an S Corp, and if they are reportable? Also, when a vendor notes 501(C)3 as the type of organization in the W-9, what does it mean? Do they need to receive a 1099?
Are Capital Call Payments Reportable?
Our company has entered into an agreement with a 3rd party private investment company that manages several capital investements on our behalf. Capital call payments are made to this investor from AP. Beyond the W-9 exemptions, are these capital calls made to the 3rd party investor truely reportable? Do you have a white paper or additional information on this type of payment?
Phantom Stock Shares for Directors and Reportability on Form 1099-MISC
There are two board of directors in my Company that received a payout of phantom stock shares in 2011. Is this reportable on the 1099-misc in box 7?