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Who Must File Form 1099-MISC?

December 7, 2020 andylee Comments Off
  • All entities engaged in a trade or business (sole proprietorships, partnerships and corporations)
  • Landlords engaging in the business of renting property
  • Nonprofit organizations, federal, state or local governmental agencies
  • Trusts of qualified pension or profit-sharing plans of employers
  • Businesses will need to fill out a Form 1099-MISC for each person, vendor, subcontractor, independent contractor, and others in the following circumstances:
    $600 or more per year is paid for rents, services (including parts and materials), prizes and awards, medical and health care payments, crop insurance proceeds, cash payments to fishermen, proceeds paid to attorneys, and other types of payments not covered by another information reporting document. Reporting such payments is required if the recipient of the payment is not a corporation – for example, when the recipient is an individual, estate, partnership, a limited liability company treated as a partnership or sole proprietorship. Payments made to corporations may be reported using Form 1099-MISC, but is not required.
  • Payments to corporations for legal services. The exemption from reporting payments made to corporations does not apply to payments for legal services. Therefore, you must report attorneys’ fees (in box 7) or gross proceeds (in box 14) as described earlier to corporations that provide legal services.
  • Medical and health care payments are reported on Form 1099-MISC even if made to corporations.
  • Payments of rent to real estate agents do not have to be reported. But the real estate agent must use Form 1099-MISC to report the rent paid over to the property owner.
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