Contribution to Former Employee's Spouse: How to Report?
We have a situation where we would like to contribution monies to a former employee's spouse - c/o of The Childens Fund. The former employee passed away in a car accident and currently the spouse does not have a trust established for the children. As I understand it, we only have two options - 1.) have the spouse set-up the trust account, obtain an EIN, and then issue monies to the trust. If the trust is set-up as a corporation then I too assume that their is not a reporting responsibility. 2.) If the spouse does not establish a trust for the children, we could issue payment to her as long as she provided her SSN. This would be a taxable issue - Form 1099-MISC - MISC7, correct?
Payment to Deceased Employee's Estate and Funeral Home Reimbursement
A deceased employee's estate was reimbursed for all expenses related to his funeral in the same year as his death. The expenses were invoiced by the funeral home and through AP payment was made to the funeral home in care of the employee's estate. Would we report the funeral home as well as the estate similar to how some attorney settlements are dual reported, or, because the ultimate beneficiary is the estate we would only need to report to the estate?
Are Hotel Rooms and Other Related Expenditures Reportable as Rent?
We always thought to report as rent the following if paid to unincorporated businesses:
Car rentals, hotel rooms, hotel conference rooms, rented venues for events such as Christmas parties, airplane tickets, chartered planes, tables/tablecloths/silverware, etc., artwork, floral arrangements, etc.
Are all of these truly to be reported as rent? We have had an extremely difficult time collecting TIN's on some of these, especially the car rental places.
Determining how to report in such situations ranks as incredibly difficult for information reporters. And for good reason. When reporting rent payments, you need to go beyond rent of real property (such as an office in a building), but also rent for any machinery or equipment you use.
Form 1099 Reporting for Nonqualified Annuity Distributions Where There is No Gain to Report
My question relates to 1099 reporting for nonqualified annuity distributions where there is no gain to report. I have found that if there is not gain on a distribution, our system does not create tax reporting. It seems to me that the distrubtion should be reported on the 1099R, box 1 and box 2 would be zero in this situation. Is it acceptable to do no reporting?
Airfare and Hotel Expenses Paid for Honoree in Regards to Charitable Service: 1099-MISC Reportable?
Does the following situation require Form 1099-MISC reporting to the individual?
An individual is being honored at a recognition event for his/her charitable service. The person was nominated by others. The person has his/her airfare and hotel paid for to attend the recognition luncheon in another state. There is no other value received by the individual.
Does this qualify as a noncompensatory payment; and therefore, does not require the person receive a 1099-MISC for the value of the airfare and hotel? Or if reportable, then only as a nontaxable amount received?
Remember, just because the person is merely being "honored" and performed no service for you does not mean they shouldn't be reported to - for instance think of the game show contestant who wins a prize or award and still gets a 1099 detailing the fair market value of that award.
New Payee W-9 With Change in Corporate Status and New TIN: What to do?
We have paid a particular vendor for services as a sole proprietorship and reported the payments on form 1099-MISC under the owner's name and SSN as indicated on the W9 form they submitted to us years ago. They have now sent us a new W9 form which indicates they are now incorproated and have a new EIN. I would assume that any payments made up to this point, would still be reported at year end in accordance with the information on the old W9 form and any payments issued going forward would fall under the corporate exemption and not be reported at all. Is my assumption correct? Also, when I ran the new EIN in the TIN Matching System, the result indicates "TIN entered is not currently issued." Is this to be expected if the new EIN was recently acquired? Can we assume that the number is correct even if a positive match was not returned by the TIN Matching System?
Is a Revenue Sharing Payment Form 1099 Reportable and if so in What Form and Box?
The XYZ Center for Philanthropy runs the GrantMaking School and made this following agreement, in recogniton of the partnership between The GrantMaking School and XXXX, we will provide a portion of our revenue to you from the course scheduled for a certain date. In exchange for revenu sharing, we ask you to help secure a sponsor for venue and food costs and to market the course to grantmakers within your region.
This 20% revenue sharing payment we make - is it a reportable payment and if so what type of payment would you consider it to be?
What is our Responsibility to Correct Errors in Past Filing Years?
We have discovered that our source system payment extract is not pulling all of the reportable payments into our 1099 reporting system. We are still working on getting to the crux of the problem and figuring out how far back the problem goes. It's looking like it goes back to about 2006. Our question is what is our responsibilty to correct past years? We know we need to correct 2010 as we have a vendor that needs a 1099 that we didn't previously issue. But are we required to go farther back or is fixing the problem, correcting 2010 and moving forward an option. What could we be looking at as far as penalties go?
Question on Reimbursing Independent Contractors and 1099 Reporting
In the past my company has only reported labor paid to Independent Contractors on 1099s. We are considering stopping this practice and reporting the entire payments made to an IC in a given year (labor & ODCs) as backing out expenses is time consuming and the possibility for error is greater. Is this acceptable with the IRS? What is the rule?
When it comes to reimbursing for expenses paid to indepedent contractors there is no hard and fast rule.
Here are some tips and your answers:
IRS Publication 463 is what you want to look to for much more information on this subject.
Multiple W-9 Line Two DBA's: Which One Do I Document and Report?
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?