Question regarding 1099s - Posted by sticky

Posted by sticky on June 17, 2006 at 17:05:03:

Thanks Natalie, I talked to a CPA to clarify things and confirmed that it’s a W-9 that I should be giving the assignee. --sticky

Question regarding 1099s - Posted by sticky

Posted by sticky on June 09, 2006 at 04:41:06:

Do I accept a 1099 Tax form from someone if I assign an AOS that was drawn up using my company name? My understanding is that it can’t be issued to a company, but the other party is insisting on it because of the large assignment fee ($35k) with $15k non-refundable, which may or may not be a dealbreaker. Can anyone help? TIA… --sticky (PA)

Re: Question regarding 1099s - Posted by Natalie-VA

Posted by Natalie-VA on June 10, 2006 at 18:57:56:

Sticky,

I’m not a lawyer or a CPA. I think you might be confusing a 1099 with a W-9. If someone is paying you or your company an assignment fee, they can ask you to fill out a W-9. There are penalties for refusing to fill one out. There is a space on the form for you to indicate if you are operating as a corporation.

Next January when that person or company who paid you the assignment fee is working on their taxes, they will go through all of the W-9s they collected and send out 1099s to some of them. They should not send out a 1099 to a corporation, but if they do, it really shouldn’t matter as long as you are declaring the income.

I hope that helps.

–Natalie