Is 1099 necessary?

ACU Frank

I hired an image consultant to make a presentation to our management team, then follow up with separate presentations to each department. I received the invoice and approved for payment, but my accounting department wants me to prepare a 1099 because it's for more than $600 (the invoice amount is $750). Is this really necessary?

plynnl

Yes, unless they are a registered corporation. You will also need to get his/her EIN number for the 1099.

NaeNae55

Agree. Send them a W9 (you can easily download from irs.gov). They will tell you on the form if they are a corporation or exempt, and will also give you correct information for a 1099M (which is not always the same as where you pay the check to).

Doesn't your accounting department issue 1099M's? Why is it coming back to you?


Nae

ACU Frank

Same reason I have a stack of past-due invoices to research after Accounts Payable sent out a bunch of checks without invoice or PO numbers... Because the CFO has been successful in keeping anything that isn't officially classified as "routine" off his plate.

KSR6450

Accounts Payable is one of my dutioes here; and I have just gone through my Vendor List to check for who needs a 1099. Why are you having to research anything? Sounds like you guys have bigger issues there than just 1099s...