Issuing 1099

[katdau71]

I issued a 1099 to an S Corp. They called and said we should not send them one because we pay them by invoice. This doesn't seem right to me. We paid them over $5,000 and I think we are supposed to issue 1099. Please help.

[ACS41]

You need not issue a 1099 to a corpration unless they are a law firm.

[taxit]

I issued a 1099 to an S Corp. They called and said we should not send them one because we pay them by invoice. This doesn't seem right to me. We paid them over $5,000 and I think we are supposed to issue 1099. Please help.

You don't have to issue a 1099 to a corp. but you can if you want.

[taxguy057]

The invoice you receive from them for the 5000.00 will suffice for proof of payment you made to them for tax purposes.

[Jack from Ohio]

These answers will all change in the coming years if the IRS has its way. Stay tuned for further developments...