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Are sponsorship fees reportable on a Form 1099?.

Question

Are sponsorship fees reportable on a Form 1099?

Answer

Most often, when your company pays for a sponsorship, you are actually receiving a form of advertising in return. If this is the case, the fee is a reportable service (because the money is spent in the "course of trade or business"). You should review the facts and circumstances of each sponsorship to determine whether it should be treated as a reportable service payment.

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