JJStephens Posted February 25, 2016 Report Share Posted February 25, 2016 In late 2015 my client (a church) paid rent (twice) for a family in the community that had suffered a serious calamity. I feel reasonably certain a 1099 to the landlord is required; I'm not aware of any exception for benevolence rent payments. The landlord insists a 1099 is not appropriate and has refused for months to provide a W-9. BTW, I re-instructed my client to withhold future 1099-able payments to any payee until they have a W-9 in-hand. I'm assuming the landlord's refusal is probably the result of under-reporting rental income, but in this case it doesn't make much sense to refuse to provide the W-9 and accept a 1099. I would think the landlord would want to show at least some income and two months worth of rent could be easily absorbed into that. Yes, I know (s)he is legally obligated to report it all. That's not my problem as landlord is not my client--I'm simply stating what I assume to be true about the motive for refusing to provide a W-9. I suppose there could also be some issues of not wanting to show up on a government agency's radar--perhaps dodging a warrant or could be an illegal, er, I mean undocumented worker--no, I mean illegal. Do any of you know of a reason why issuing a 1099 could be avoided in these circumstances? Any suggestions about compelling the landlord to comply? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 25, 2016 Report Share Posted February 25, 2016 I'd just do it, a paper filed 1099, with his name and address and 'refused' in the box for SSN. 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted February 25, 2016 Report Share Posted February 25, 2016 The church was under no legal authority to pay the rent, perhaps the landlord considered it a gift. Honestly, if you go ahead and file you better have written permission from your client to do so, I would hate for the tenant to get evicted and then blame you. If its not a "business expense" to the church are they even obligated to issue a 1099? [I have no idea but should be considered] 3 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 25, 2016 Report Share Posted February 25, 2016 Good points, Michael. I think you are right, the church did not pay this as a business expense, it was actually a gift to the tenant. So no need for a 1099 from them. 2 Quote Link to comment Share on other sites More sharing options...
Roberts Posted February 25, 2016 Report Share Posted February 25, 2016 8 minutes ago, kcjenkins said: Good points, Michael. I think you are right, the church did not pay this as a business expense, it was actually a gift to the tenant. So no need for a 1099 from them. I agree. I wouldn't expect a 1099 to be produced. IMO the Church would consider it a gift to the tenant. 3 Quote Link to comment Share on other sites More sharing options...
JJStephens Posted February 26, 2016 Author Report Share Posted February 26, 2016 I wrestled with those same thoughts. It is a gift to the tenant, but it is a payment of a fee to the landlord. That would mitigate in favor of a 1099. However, it was a substitute payment on behalf of an individual who is not required to issue a 1099 thus mitigating against needing to issue one. In my mind, the second argument is more compelling. I've spent more than an hour searching the net and about half a dozen IRS pubs for some guidance and found nothing. I think I'm going to go with your counsel & my gut. Thanks, all! 2 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 26, 2016 Report Share Posted February 26, 2016 Right. It's a payment to the landlord, but NOT a payment of a fee, or rent, because they did not owe the landlord. Quote Link to comment Share on other sites More sharing options...
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