We made payments to a stipend physician totaling $7,000.00 prior to October, 2012; the physician opted out of his contract and repaid the $7,000.00 in October, 2012. Should we issue a 2012 1099 for the amount he was paid even though he repaid the money during 2012.....or should we net the payment and repayment amounts (which nets to -0-) and not issue a 2012 1099?

A settlement to an adversarial claimant was for a strip of property that was needed to make our policy holders title whole.  The claimant is saying that they should have received a 1099S, as the payment was for a property sale.  I contend that this is a settlement that included the deed as part of the settlement, so would be reported on a 1099MISC.

1) Which is correct?

2) I asked for the full details of this case after the 1099MISC's were sent out, when it was brought to my attention by the claimant.  It seems that this should fall under the claimant "fixed and deteminable" exception.  Do you agree? 

3) My coworker was unsure if this fit within the exception mentioned in 2), so she played it safe and did not exempt the settlement (if in doubt, report).  Even though this may be an exception, is there any consequences with the IRS for reporting on exempt settlements?  Are there settlements we are required not to report?

Box 3 - Claimant reporting question

1)  How do reimbursements fit into the picture?  I work for a title insurance company.  My company paid the policy owner (the claimant) a settlement for a special assessment on their property that was missed at the closing and was paid by the claimant directly.  The settlement to the claimant was a reimbursment for the exact amount they paid (thus fixed and determinable), so no extra funds.  Is this still reportable in box 3?

2)  And to muddy the waters:  In the above transaction, two payees were named.  They are married.  I reported the full amount of the settled reimbursement to both.  Is this correct?  Or do I just need to report to the first married person listed.

3)  Finally, it turned out that the husband died soon after the payment, but long before the 1099MISC was sent.  Would this make any difference in what is reported?

We have a vendor that sent us a reimbursement.  Do we need to net that in box 7?

We are doing business with a company that is advertising on a billboard for us.  Should this be reported in box 1 or box 7 on a 1099-Misc?

Our Board of Director members have been treated and reported as employees.  Is it customary to treat Board of Director members as "employees" instead of "independent contractors"?  If we were to treat and report them as independent contractors, then at year end they would receive 1099-MISC form instead of a W-2 form. 

In February 2013 our organization is planning to pay a performance bonus to those employees that were identified as high performers during the 2012 calendar year.  About 10 of them have separated from the organization and they are no longer employees, but they qualify to receive the performance bonus.  We have a three-part question:

- Do we as an organization report the performance bonus gross payment on form 1099-MISC since they are no longer employees?

- Do we as an organization report the performance bonus in Box 3 or Box 7 of  form 1099-MISC?

- Will the performance bonus recipients need to pay the full self-employment tax rate (15.3%) on the received amount when they report this as income in their 2013 individual tax return?

I reviewed the responses to several questions posed on the site regarding nonemployee compensation for individuals in Puerto Rico. I understand the distinction for a US person vs non-US person (for services performed in the US). However, I'm not clear on when the 480.6B to the Govt of Puerto Rico should be filed vs the 1099-MISC to the IRS. Or should they both be filed if they are a US person and reside in Puerto Rico?

RE:  1099'S AND EMPLOYEES

Some of our sales people were given a $3,000 travel voucher.   The sales manager would like to report this on a 1099 instead of a W-2.  Would that be correct?

Also we are a 'Dealer' for Caterpillar and they would be willing to reimburse us for this expense - in that case, could we issue a 1099 to these sales people who are also are employees?

Please let me know if you need additional information.

I have a vendor that I paid in 2011 but ended up voiding and reissuing the check in 2012. I already sent them a 1099 for that amount. What do I do for the 2012 1099, do I report that amount again?