Is a Rebate Payment 1099 Reportable?
Our Transportation department gives certain customers a 5% discount up front on their bill, and then later (twice per year) will issue them a check for another 5% rebate if they are still an active customer and continue to use our hauling services.
Would the 5% rebate payment be 1099 reportable? I'm not sure if this should be considered a refund, which wouldn't be reportable, or if it should be considered income since they have to meet certain criteria in order to get it (i.e. be an active customer).
If it is reportable, would it go in box 3 (Other) since it's not really compensation for any services performed?
A key point to begin:
In general product customer rebates are not taxable income.
But this is a unique situation.
We Paid a Non-U.S. Person For a Property Involving a Lien. How do we report?
I work for a title insurance underwriter. I recently received a claims request paid to a non US person for a US property they purchased recently. The reason for the payment is as follows:
He is our insured and purchased a piece of property in the US wherein a lien popped up. He paid it and we are reimbursing him.
1) The person is from a non-treatied country. Is this reimbursement still subject to the 30% withholding, as the lien paid by the non US person would have been made to a US government entity and be easily documentable?
2) Assuming a valid W8 was presented claiming treaty benefits, how would this payment be treated as far as determining what provisions would be used? Should it be considered a settlement, a reimbursement, a real estate transaction, or something else?
You must be careful with liens and payments made to Non-Resident Aliens.
If I have a vendor that is an LLC but either S-Corp or C-Corp, do you need to send them a 1099?
If I have a vendor that is an LLC but either S-Corp or C-Corp, do you need to send them a 1099?
Making payments to LLC's is always tricky. In large part this is because such organizations can take any number of forms (for tax purposes).
As such, let's get to your question and provide the answer you need.
Property Reports and Title Search Payments to Title Company: Are They Reportable?
If a title company is not incorporated, do we report payments made directly to the title company for things such as:
Property reports
Title searches
We will start with the basics.
You will want to walk through your standard progressions here.
Remember...
whenever you are unsure about a situation you always want to start with two simple questions:
Who is my payee?
What is the payment for?
In this case it's really all about the payment.
Attorney's Working as Escrow Officers: How to Report?
We have two employees that work as escrow officers. They also happen to be attorneys that provide the legal service; deed preparation. In Texas and Ohio deed preparation is always done by attorneys. This service is also paid through the escrow file; payments made through the escrow file are not reportable on a 1099.
Can we pay them through the file or should they be paid through payroll?
Years past we had a situation where escrow officers were doing notary signings after hours, these are paid through payroll, not the escrow file.
Second question - if the attorneys were PC's would it change anything?
The answers to both of your questions hinge on your very first sentence.
Question Regarding Employee Matching Gifts Donation Program and IRS Compliance?
We have a question regarding our company offering a matching gifts donation program. Are these donations tracked differently than a normal company donation? Currently, we are asking our employee to provide their SSN on a form submitted to human resourses and we would like to know if this is required in order for the matching contributions to be tied with the IRS.
Do I Form 1099 Report a Puerto Rican Payee Doing Work in Puerto Rico?
My company is a title insurance underwriter. We are working with a Puerto Rican attorney who is researching in Puerto Rico on a Puerto Rican legal issue. What are my reporting obligations in this case?
These types of reporting situations are complicated and require a thorough review of all factors in the specific situation. No one situation will be the same as another. However, given the facts and circumstances you have outlined here is what you will need to do.
Do We Send A Form 1099-MISC to S-Corporations or LLC's Registered as S-Corporations?
Do we send a 1099-M for S Corporation and Limited Liability Company--S=S Corporation?
Corporations...
are not normally reportable on the Form 1099-MISC as there has been a specific exemption carved out from such reporting. But there are exceptions to this exemption from reporting.
Is a Chapter 13 Trustee Exempt From Completing a Form W-9 in a Legal Settlement?
When requesting a W9 for a large settlement, the following email was received from the Chapter 13 Trustee:
"We are tax exempt so we don't issue W-9s and don’t have an estate EIN."
Staff Attorney
Office of the Chapter 13 Trustee
I understand that the amount is not reportable, but does this negate the obligation to document the payee by collecting a W9 or getting tax ID information? Or in other words, are Chapter 13 trustees truly exempt from providing a W9?
You have a number of due dilligence compliance requirements. Let's break those down for you as follows:
First off, you will need to request this information (for a variety of reasons including Section 1.1441 of the Internal Revenue Code (IRC) vis a vis documenting and verifying the status of payees as U.S. or Non-U.S.).
Payments of Premiums for DIrectors and Officers Liability Insurance Made to Affiliate of US Vendor Located in Bermuda: Do We Report and Withhold?
Our vendor is US, we make payments to the affiliate located in Bermuda for premiuns for directors and officers liabiltiy insurance. I am waiting on a W-9. No foreign withholding or reporting correct?