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Should LLCs listed as a Partnership (P) or Individual/sole…

Should LLCs listed as a...
Should LLCs listed as a Partnership (P) or Individual/sole proprietor or single-member LLC receive 1099-misc?
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Answered in 13 minutes by:
1/19/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,984
Experience: Taxes, Immigration, Labor Relations
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In general - form 1099misc is required when payments are paid to the individual (person) or to the single member LLC which is disregarded entity.

See instructions page 7

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

What is nonemployee compensation? If the following four conditions are met, you must generally report a payment as NEC.
1.You made the payment to someone who is not your employee.
2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).
3. You made the payment to an individual, partnership, estate, or, in some cases, a corporation.
4. You made payments to the payee of at least $600 during the year
.

.

So far the IRS in instructions indicates that payments to the partnership should be reported...

There is no clear indication regardless LLC treated as a partnership.

But that situation is not excluded - among some payments which do not have to be reported on Form 1099-MISC - we see payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation).

But payments to the LLC treated as a partnership is not excluded.

So - while there are some "gray" area in instructions - I would suggest to issue such reporting to be on the safe side.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,984
Experience: Taxes, Immigration, Labor Relations
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Customer reply replied 5 months ago
That was my thought as well. Thank you,
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