Question

Who get 1099 when payee and service provider are different?

Forum|Forum|3 years ago
September 24, 2022
1 reply
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Service provider “A” does work that requires a 1099. “A” asks Payer to make payment to ”B”. Under IRS rules, should the 1099 be issued in “A’s”name (and social security number) or in “B’s”name (and social security number) ? Please cite legal authority for your answer.

Not A Product Question

Critter-3

The 1099 goes to the party you actually paid. This situation sounds like a tax avoidance scheme by party A by having you bypass paying them and instead paying their subcontractor directly but this is not your concern. Have the party you are paying fill in an IRS W-9 form before giving them a single penny so you have the info needed to issue those 1099 forms next Jan.