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: 1/18/2008 Subject: 1099
Question QUESTION: Other than independent contractors and lawyers, who else should get a 1099 M(my CPA firm, etc.)?
ANSWER: Individuals and partnerships who provide $600 or more of services to your business.
---------- FOLLOW-UP ----------
QUESTION: So, who doesn't get a 1099? I called the IRS, but am more confused than before. My question to the IRS was, what kind of business is excluded from receiving this form, or should I prepare one for all the companies that I paid $600.00 and more to?
Answer It is not the type business that is important - it is the form of organization. Corporations do not get 1099's. People that sell you products do not get 1099's. It is just service providers who are not corporations that generally get 1099's. These are typically people like the lawn service, the cleaning service, the computer guy, your accountant. However, if these folks are incorporated ,they would not get a 1099.
There is no penalty for sending a 1099 to someone that should not get one but sending one to everyone you paid $600 or more to could be a real pain.
