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Doing Business As (DBA) | Tax Information Reporting Skip to main content

Should all LLC vendors get a Form 1099-MISC?

Question

When you have a vendor that is an LLC that you purchase items from, but occasionally there is a labor charge on the invoice should all the invoices be including on the 1099-MISC. or just the ones that have labor on them?  In the past we have included all the invoice and let the vendor be held responsible.

Should all LLC vendors get a 1099-MISC?

Answer

LLC's create all kinds of havoc for information reporters and for good reason. They come in a myriad number of forms, and each is typically treated differently for reporting purposes. So in asking if all LLC vendors get reported the answer will revolve around your individual facts and circumstances as follows.

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W-8BEN and DBA

Question

We currently have a W8-BEN from a Vendor under one name and they completed our vendor form indicating that they are legally the name listed on the W8; however, they also state they are doing business as a different name. The W-8 does not have a section to list DBA's. Are we required to have both names listed or are we covered with just the legal name and reporting under that name with the DBA?

Answer

Here is what you need to know.

You will...

report the name provided on Line One of Part One of the W-8BEN as that is the name verified on the form under penalty of perjury by the beneficial owner of the income. Moreover, even if they are a disregarded entity it is still the owners name that matters in terms of accurately matching the information submitted.

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Parent Company Merging Subsidiary Into Single Filing Entity

Question

Background - we have many banks that file information returns separetly but are owned by a parent company. The parent company is wanting to merge these banks into one filing entity (mid year). It's our understanding that we can combine the pre-merger numbers with the after-merger numbers into one filing at year-end. Is this true? They would like the information forms that are sent to the customers to continue to use the individual banks name along with the parent company EIN. Can you advise us as to our options? - Use the parent company name on line one and the Bank name on line two (1 - ABCD N.A., 2 - Bank of Acme) - Use the first four letters from the parent company and then the Bank name on line 1 (ABCD - Bank of Acme, N.A.)

Answer

Your questions really break down into two categories. One category is more about the general strategy to follow because of a merger, and the second is more about the mechanics of filing.

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Which TIN for a Single Member LLC?

Question

This vendor filled the W9 form. He said that the business is an LLC. I informed the vendor that the Tin# is not currently issued per IRS Tin Matching website. He said that is the number he uses for his Tin and UBI. He told me to just use his SSN instead. Is this okay? Can I just use his SSN for an LLC business?

Answer

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Vendor is Husband/Wife Sole Proprietorship With Twist

Question

We have a vendor claiming to be a husband and wife sole proprietorship. I have researched and found this to be okay, it is called a "joint venture" which became available to husband/wife sole proprietorships after 2006. Previously we have made checks payable to the business name. This year the husband is asking the checks be issued in his name and under his social security number. Is this okay or should the checks be made payable to the husband and wife or their business name or does it matter? If we make the check out to the husband and wife or business name does it matter which SSN we use? Thank You

Answer

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Vendor LLC Request for New 1099

Question

We have been asked by a vendor, an LLC, to reissue a 2009 1099-MISC using a different tax identification number. We used the number we received when the vendor account was established, which was the social security number of one of the owners/partners. The account was set up as LLC Name, DBA Owner's Name. During 2009, the LLC changed their tax identification number with the IRS. We were not notified of this change until January 27, 2010. Are we obligated to re-issue the 1099? Should we reissue it or are we correct to stand by the 1099 we originally prepared and sent to the LLC and its owners? The 1099 we issued was listed as Owner's Name, DBA LLC Name.

Answer

First, you should...

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Two companies and same EIN: How do I report?

Question

If I have two companies with the same Employer identification number--example XYZ LIMITED PARTNERSHIP (Merchant name) XYZ LIMITED PARTNERSHIP(Business name) ABC TAP ROOM(Merchant name) ABC TAP ROOM (Business name). Do I sent two forms using the same EIN? The only thing tying these together is the EIN. Thanks

Answer

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LLC claiming corporate exemption from reporting

Question

When the w-9 says the company is an LLC but then classifies it as a Corporation, do you have to send a 1099?

Answer

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Sole Proprietor

Question

A Sole Proprietor did some professional service work and it was paid out of pettycash. Should I issue a 1099 to the vendor?

Answer

Payments for reporting purposes take on a multitude of forms and it is quite common to aggregate payments to reach reporting thresholds (watch your thresholds carefully - they are easier to reach than is often expected). Just because a payment is made by pettycash does not make it any different from one by check, p-card, wire transfer, etc... Just make sure that when you are tallying payments made to a particular vendor that you do not duplicate or omit any payments when aggregating amounts, you do not want to over- or underreport.

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When the business that has registered a DBA falls under . . .

Question

When the business that has registered a DBA falls under the corporate exemption, is the DBA also exempt?

Answer

When you make payments to a DBA, you will actually...

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