Non profits are usually set up as corporations. 1099 Rules indicate that corporations are exempt from receiving 1099 statements, EXCEPT for certain items which you must report on a 1099. Medical or Health care payments are reportable, but non-employee compensation (contractor payments) are not reported. A non-profit is considered to be engaged in a business or trade. Therefore, a 1099 IS REQUIRED to be sent for Medical payments.If you are ever unsure, there is no penalty for sending a 1099 to someone who wasn't supposed to get one, but if you are required to send one and you don't, then you may be subject to a penalty. In other words, send a 1099 when unsure and you are always safe.Source: 1099MISC instructions Page 1, Column 2. http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
1099MISC instructions Page 1, Column 2: doesn't that section refers to non-profits needing to issue 1099s, not necessarily if they should receive them?
But your answer makes sense in the fact that non-profits are set up as corporations (vs. sole proprietors, individuals, etc.) which I did not consider. Also, since attorneys and medical/healthcare are supposed to received 1099 regardless if they are a corporation or not, I will make sure I continue to issue 1099 for the medical/healthcare services (attorneys are never not-for-profit LOL!), but not for other services.
I greatly appreciate you answer. It was extremely helpful.