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Nonprofit Law/when do you issue a 1099 misc for a person who volunteers but gets paid with no receipts turned in


I am president of a 501(c). We are an armature sports organization. Each team has a separate checking account - they pay their bill and manage their own financing. A few teams pay their coaches. In the past they purely paid the coach 2500.00 per season straight up. Each team files taxes under our associations tax 501(c) number. We told them last year is they paid their coaches over 600.00 we will give them 1099misc.One team has broke down the way they pay. They pay mileage and hotel and an allowance for food. They collect no receipts. Is this still considered income to the coach? Should we the association be giving that coach a 1099 Misc. I have to sign the league taxes and want to be sure we are doing it right.

I am assuming that the coach is not an employee. The employees receive  W-2s and an independent contractor a 1099-Misc from the 501(c)(3) organization. A individual may not be a business but still, if not an employee, would receive the 1099-Misc for any payments over $600.
See which is the IRS'
instructions for form 1099-Misc.

The mileage and hotel and an allowance for food are included in "payments" for purposes of the regulations for 1099-Misc. There are some exceptions listed starting at the bottom of page 2 of that IRS publication, but your payments are not listed there as exceptions. On the right column of page 7 you will see the details of your situation under the heading, "What is nonemployee compensation?". Specifically, "Examples.   The following are some examples of
payments to be reported in box 7.... A fee paid to a nonemployee, including an independent
contractor, [f]or travel reimbursement for which the nonemployee did not account to the payer, if the fee and reimbursement total at least $600."

The phrase "did not account" means did not account properly.  Although written for employee reimbursements, See page 41 of IRS Publication 535 at starting in the first column under the heading "Accountable Plans" which gives details as to proper accounting.

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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