Doing Business As (DBA)

If a Vendor Marks Disregarded Entity on the Form W-9 Are They Exempt From Reporting?

Question:

When a vendor marks a W9 as an LLC and then puts in the D for Disregarded Entity, are they exempt from 1099 reporting?

Answer:

When dealing with single-me . . .

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What Lines on the Form W-9 Do We Use for DBA name's?

Question:

We have a very large vendor database where the DBA's were placed on the first line and the individuals' name on the second line ---these were our instructions in prior years. They have not kicked out for B-Notice purposes ---should we be concerned about this and work on changing these or since we have not had any problems - are they OK as is?

Answer:
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Questions about B-Notice's and LLC's/DBA's

Question:

We have received some B-Notice items for 2011.

On 1099s for partnerships and LLC's - should the legal name go on the first line and the dba on the second line?  If this is incorrect, would this cause the 1099's to kick out on B-Notice statements from the IRS?  

Also, if the address is not on one line ---would that cause the 1099 to kick out?  One of the vendors kicking out has the Suite # on the second line of the address.

Do we need two lines for the Partnerships and LLC's - can we only have one name on one line?

We believe we have the ID numbers correct so we are trying to figure out what would cause these vendros to kick back.

Answer:
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Disregarded Entities and Form 1099 Reporting

Question:

We have had a couple of situations recently where groups insist they must bill/submit claims under the name and TIN of the disregarded entity (DE), but they then want us to report the payments under the name/TIN of the owner. Problem is our systems are not set up to handle multile TINs like this - if they bill using the DE TIN, the system will send the 1099 to that TIN and the name we have set up under that TIN. So, we offer up the following solution.

We tell them we can set them up to pay the DE name, but they have to bill using the TIN of the owner. In doing this we can set them up so the payment goes to the DE name, but the 1099 goes to the owner's name and TIN. However, to make that happen they need to bill using the owner's TIN.

We have gotten some push back on this where some groups say they cannot do this - that this would be out of IRS compliance for them to submit under the owner's TIN.

They also say it is out of compliance for us to report under the DE name and EIN, even though that is how the payments are being issued. Like I say, since our system cannot pay to one TIN and report to another, the 1099 will go to the DE name and TIN if they insist on billing under the DE TIN.

I disagree with both these arguments. First, I do not know how the IRS would ever say it is wrong to report payments as they are made. I also do not believe they would say it is wrong to have them bill using the TIN of the owner, even if we are paying the DE name.

I do understand that a DE does not file a Tax return, and therefore their income is captured by the owner. I am just looking for confirmation that handling as we propose to these groups does not cause a compliance issue between us and the IRS.

I hope this all makes sense.

Answer:
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Multiple W-9 Line Two DBA's: Which One Do I Document and Report?

Question:

I recently received a W-9 for a medical provider that gives the company name on line 1 and they attached a list of about 45 people that are a DBA of the company name - all under the same tax id.

Is this acceptable?  Do I just report the name on line 1 without a DBA name at all?

Answer:
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