David Posted January 30, 2012 Report Share Posted January 30, 2012 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. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 30, 2012 Report Share Posted January 30, 2012 You do not need to send 1099s to corporations. You can, though. Nothing new. Quote Link to comment Share on other sites More sharing options...
David Posted January 30, 2012 Author Report Share Posted January 30, 2012 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. Quote Link to comment Share on other sites More sharing options...
jainen Posted January 30, 2012 Report Share Posted January 30, 2012 >>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. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted January 30, 2012 Report Share Posted January 30, 2012 if you get a W-9 from everyone you pay then you have the info needed......really too much extra paperwork 1 Quote Link to comment Share on other sites More sharing options...
David Posted January 31, 2012 Author Report Share Posted January 31, 2012 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? Quote Link to comment Share on other sites More sharing options...
jainen Posted January 31, 2012 Report Share Posted January 31, 2012 >>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. Quote Link to comment Share on other sites More sharing options...
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