No 1099-MISC to S Corps?

[David]

I am just now finding out that a 1099 does not need to be sent to S Corps or LLC's taxed as S Corps. When did this change?

I haven't heard this before and was still under the impression that only C Corps were exempt.

I read the 1099 instructions and nothing was mentioned as far as S Corps being exempt.

Thanks.

[Lion EA]

You do not need to send 1099s to corporations. You can, though. Nothing new.

[David]

If nothing is new, I thought only C Corps were exempt and 1099s had to be sent to S Corps. Hmmm... have I been wrong all these years? I know I read that 1099s had to be sent to S Corps years ago.

[jainen]

>>nothing was mentioned as far as S Corps being exempt<<

How are you supposed to know whether a corporation has made a particular election on its income tax return? On the other hand, how are you supposed to know whether an LLC has made a particular election on its income tax return?

You don't have to 1099 a corporation. But an LLC is not a corporation.

[michaelmars]

if you get a W-9 from everyone you pay then you have the info needed......really too much extra paperwork

[David]

How are you supposed to know whether a corporation has made a particular election on its income tax return? On the other hand, how are you supposed to know whether an LLC has made a particular election on its income tax return?

That is why the W-9 always had a box for C Corp and S Corp. I thought the purpose of that was to know if the company is a C Corp that you don't have to send a 1099. Otherwise, why wouldn't the W-9 just have a box for Corporation?

So are all of you saying that since the dawn of time no 1099s need to be sent to an S Corp?

[jainen]

>>That is why the W-9 always had a box for C Corp and S Corp.<<

Since I don't do payroll-type stuff, this is kind of a new question for me. I might be getting it wrong.

But looking at the prior W-9 at http://www.irs.gov/pub/irs-prior/fw9--2007.pdf, there is NO box for S-Corp. Instructions to the latest version at http://www.irs.gov/pub/irs-pdf/iw9.pdf say what is new is the S-Corp checkbox because S-Corps are no longer exempt from backup withholding and will have new broker reporting requirements for stock sales. Something like that, anyway.