AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 12/19/2007 Subject: 1099's
Question QUESTION: How does a company know which vendors are eligible for 1099's and which are not? Example... UPS store and Yancey Bros(equipment rental)
ANSWER: The law is very specific about that. Generally, 1099's are sent to individuals (not corporations or partnerships) who provide services of $600 or more per year. It does not apply to rentals or goods - just services.
Here is a link to the IRS site that can provide more detailed guidance.
QUESTION: Ok, so rental companies and material companies would not get one but a place that repairs the equipment would?
Answer Yes - but only if the company that repairs the equipment is not incorporated or operating as a partnership. For example, if Joe from Joe's Equipment Repair and Sandwich Shop does more than $600 of work - then send a 1099. If ATT comes out and repairs your phone system for $50,000 - then they do not get a 1099.
It is not about size but about their legal status as a corporation, partnership or sole proprietor.
