1099-NEC for donated honorarium?

[Ringers]

A guest speaker at our Church had the check for her usual honorarium of $800 made out sent directly to a charity.  Do I still have to issue her a 1099-NEC since the payment was not made direrctly to her?

[DANRVAN]

 

1 hour ago, Ringers said:

had the check for her usual honorarium of $800 made out sent directly to a charity.

Sounds like a "Donations in Lieu of Honoraria",  received  under constructive receipt doctrine since he had control of the funds.

[DANRVAN]

For an authoritative cite see 1.16-2(c) which has been referred to in many cases.

"Where, however, pursuant to an agreement or understanding, services are rendered to a person for the benefit of an organization described in section 170(c) and an amount for such services is paid to such organization by the person to whom the services are rendered, the amount so paid constitutes income to the person performing the services."

[Ringers]

Thank you Dan for the reply and especially the cite!

[BulldogTom]

So who gives the receipt for the donation to the speaker?   The church who actually sent the money to the charity or the charity who received the donation?  Since the speaker is going to get a 1099 for the income, they are going to want to get a deduction for the donation.  

Thanks for the discussion.  I learned something new today.

Tom
Longview, TX

[Medlin Software, Dennis]

Makes sense.  I cannot have my income go to something else, say our daughter's able account to bypass it being my income.

I have those crazy thoughts as I transition to having enough SS wage history to begin to look at lowering wages and increasing non wage income. Likely will be a good old minimum reasonable wage and more dist at some point.

[Medlin Software, Dennis]

The Ohtani (baseball) contract has CA in the news. CA wants to be able to tax the deferred income such as in the Ohtani contract. I guess, at present, Ohtani's representatives were able to stick it to CA (and possibly IRS) with the huge deferral, expected to be paid after he retires and likely changes domicile to a more tax friendly location.

https://www.sfgate.com/sports/article/shohei-ohtani-s-dodgers-deal-prompts-california-18598483.php

Maybe this is a loophole others can use as well, such as nearing or at no need for taxable income, yet not claiming SS at present. Defer income until SS claimed and spread it out a bit if desired. Would likely need to provide some sort of guarantee via insurance or other non taxable means, in case the paying entity disappears.

There is a reason why it is impossible for CA and NY teams to bid the same as other teams with 81 home games (entertainment performances) in a more tax friendly or an income tax free state.