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Level 2
January 8, 2020
Question

Do I need to send a 1099 form for a back charge?

  • January 8, 2020
  • 1 reply
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1 reply

Critter
Level 15
January 8, 2020

Explain what you mean by "back charge".   To whom ?   For what reason ? 

kenflorekAuthor
Level 2
January 8, 2020

I'm a subcontractor for a steel fabrication shop and I made a mistake on a job and was back charged $2000. My PO was paid in full and I sent the fabricator a check for the $2000. 

Critter
Level 15
January 8, 2020

No you do not need to issue a 1099 ... this is handled by entering all of the income from the PO and then reporting the "return" on the Sch C.