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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10791
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am a CPA: Q: 1099M-I have tried 6 different IRS phone

Customer Question

I am a CPA: Q: For form 1099M-I have tried 6 different IRS phone numbers only to be turned away every time.
It says in the instructions for the form that only healthcare and law firms are MANDATED and have to file 1099M for every payment during the year they issue. It also states that payments made by other entities to lawyers must issue the form. However, since the threshold for issuing the form is $600.00 WHAT ARE THE REAL RESPONSIBILITIES OF EVERY OTHER TYPE OF ENTITY???
Please address this also in terms of corporations, llcs, llps and sole proprietors. The instructions clearly state it has to be related to a trade or business of course. What is your latest understanding on this matter???
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial & tax advice since 1986.

I can help here

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Quite honestly, you've answered much of the question. Any trade or business regardless of entity type (so we have sole proprietors, partnerships, LLC's - which of course can be taxed as Sole proprietors, partnerships, S-Corps or C-Corps depending on the number of owners and their tax election - S-Corps and C-Corps, must use the 1099-MISC when amounts paid to any person or entity other than corporations.

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So it's likely best simply to list the only exceptions to sending the 1099-MISC (and this has nothing to do with the send, but rather what type of entity and amounts the 1099-MISC is being sent TO: (Again ALL entity types must SEND)

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Not Required to File Information Returns

You are not required to file information return(s) if any of the following situations apply:

  • You are not engaged in a trade or business.
  • You are engaged in a trade or business and
    • the payment was made to another business that is incorporated, or
    • the sum of all payments made to the person or unincorporated business is less than $600 in one tax year (unless the recipient is an attorney or law form, see specific instructions for1099-MISC for further details).
Expert:  Lane replied 1 year ago.

Please let me know if you have questions at all

...

Lane

..

Expert:  Lane replied 1 year ago.

P.S. ... same would be true of LLPs as well ... Again, essentially any trade or business.

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The exceptions come based on amounts, and who the payments are being sent TO

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Does that help?

Expert:  Lane replied 1 year ago.

OK... still don't see you coming back into the chat here... Please let me know if this has helped, AND if you have ANY other questions at all

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If this HAS helped, and you DON'T have questions, I'd really appreciate your positive rating … (by using the stars or rating request on your screen) … … That’s the only way JustAnswer will credit me for the work.

...

Thank you,

Lane

Expert:  Lane replied 1 year ago.

Hi,

...

I’m just checking back in to see how things are going.

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Did my answer help?

...

Please let me know if you need more here.

...

Thanks

Lane