Expert: MEdusa - 11/5/2009

Question
I work for a small law office. DO I need to issue MISC 1099 forms to vendors who were paid as Advanced Client Costs and these costs were reimbursed to us from our clients?

Answer
as you work for a law firm, you realize this is not legal advice, but yes. you do need to report most payments - especially for services - corps and inventory (does not apply to lawfirm) are exempt.  as are wages.

so, that said, my mantra is 1099 EVERYONE including your mother and god.  let them sort it out. if they pick up the income no big deal, if you were supposed to give them a 1099 (more importantly, you need w9 with ID or backup withholding applies!)

MEdusa.