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Do I 1099 an LLC that is a materials supplier? Do I 1099 an…

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Do I 1099 an...

Do I 1099 an LLC that is a materials supplier?

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Do I 1099 an LLC that is a materials supplier?

Accountant's Assistant: Is there anything else important you think the Accountant should know?

Supplier provides no services; More that $2000 in materials are purchased from them annually

Submitted: 3 months ago.Category: Tax
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3/20/2018
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,610
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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Hello!

My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

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Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago

Generally, No, you would not issue a 1099 to a company that supplies you with only materials.

____

File Form 1099-MISC, Miscellaneous Income, for each person in the course of your business to whom you have paid during the year:

  • At least $10 in royalties

At least $600 in:

  1. Rents
  2. Services performed by someone who is not your employee
  3. Prizes and awards
  4. Medical and health care payments
  5. Crop insurance proceeds
  6. Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
  7. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate
  8. Payments to an attorney
  9. Any fishing boat proceeds

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

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Customer reply replied 3 months ago
Thanks.
Customer reply replied 3 months ago
I feel a bit naive. Not just about the tax issue, but rather the sign up that seems to obligate me to a monthly fee. Not good. I would gladly pay $5.00 a question, but this monthly fee is not wh at I expected or wanted.
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago

I am not sure about the pop up, which seems to be new, you may ignore the pop up

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