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Question

If a research company pays $600 or more in honoraria to a doctor or nurse who completes a survey for the company, must the company obtain the person's tax ID number and issue a 1099-MISC? What if the honorarium went to through the doctor's practice and not to him personally -- still a 1099 MISC? Which tax ID?

Submitted: 434 days and 16 hours ago.
Category: Tax
Value: $45
Status: CLOSED

Accepted Answer

Greetings,

 

The instructions for the 1099-MISC are available online at http://www.irs.gov/instructions/i1099msc/ar02.html#d0e621

 

"Some payments are not required to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include:

  • Generally, payments to a corporation" ...

So, if the payment was to a company that is incorporated no 1099-MISC is required.

 

The tax identification number or verification the company is incorporated is usually obtained via Form W-9

 

 

The payment in exchange for completing the survey, as described, is required to be reported. Again, from the instructions linked above:

"Box 7. Nonemployee Compensation

Enter nonemployee compensation of $600 or more. Include fees, commissions, prizes and awards for services performed as a nonemployee, other forms of compensation for services performed for your trade or business by an individual who is not your employee, and fish purchases for cash. Include oil and gas payments for a working interest, whether or not services are performed. Also include expenses incurred for the use of an entertainment facility that you treat as compensation to a nonemployee."...

 

The payment and the 1099-MISC should be in the name of the one that performed the services; so it could be proper to use the individual or the practice depending on the circumstances.

 

I hope this helps for correctly reporting the fees paid ot complete a survey.

 

Best regards.

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Expert: John Gordos EA
Pos. Feedback: 99.8 %
Accepts: 1492
Answered: 1/6/2009

Enrolled Agent

I have prepared individual, trust, partnership, and corporate taxes since 1987.

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