1099 issue

[Margaret CPA in OH]

Client uses facilities in an office of holistic health professionals for counseling services which pays her via 1099MISC. Insurance is billed as possible and insurance issues 1099 to client.  That amount is paid by insurance is withheld by holistic health professionals in lieu of rent, phone use, office support, etc.  Does the client have to in turn issue a 1099 back to holistic health professionals?  The insurance company issues in client's name as she is the service provider.

[ILLMAS]

Possible, why not just expense the rent etc... to offset the 1099 and maybe next year the 1099 can be issued to the right party.

[Margaret CPA in OH]

Thanks for the reply.  I do expense the offset because that is what the client is charged.  It can't be issued directly to the holistic health professionals as they are not doing the counseling so cannot bill the patients' insurance.  Client is an independent contractor (own scheduling, etc.) just using the office space and support.  Professionals are willing to accept as payment just the amount insurance pays.  It's all bottom line even at the end.  But the fact that she pays over that amount for the space and support to an LLC kind of seems to require that she, in turn, issue a 1099 as it is over $600.  Sigh... there are bigger problems in the world now.

[jklcpa]

Yes, I would issue a 1099 for the rent and support services. 

[Margaret CPA in OH]

Thanks, Judy, but it is now well after the deadline.  The have provided on their letterhead that they received that amount of money although that isn't the same as a 1099 going to IRS.  I'll have to think about this some more.  I also need to clarify the actual transfer of money.  Wondering if it 'goes through' the pro's account in client's name (they assist in billing the insurance being set up to do that) rather than to her first then she pays them.  Probably the former.  They also pay her directly for counseling some of their clients so this is a fairly small amount of the total but more than $600.