My business helps patients get their medical marijuana card. We work with a doctor who provides the doctor's evaluation for the patients. The doctor is not our employee. The patient pays us for our service and the doctor's evaluation in one payment and then we pass the doctors fee to the doctor. Do we need to do a 1099 form of some sort for the doctor or something different?
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Yes, since you have a business, you must include the payments you send to the doctor on an official reporting form. Please see this LINK for more information.
Form 1099-MISC
According to the IRS, beginning with tax year 2020, you should file Form 1099-MISC for each person to whom you have paid the following in the course of your business during the year:
Thank you for your quick response. Just for my clarification, I also asked this question on another site...they suggested a 1099NEC.
I am not paying anyone's medical or health care payments, we are paying the Doctor for performing her part of the service to a mutual patient. So just double checking...you think at 1099Misc rather than a 1099NEC?
I agree, 1099-NEC would be the best choice.
The IRS explains that, in general, you must report payments you make if they meet the following four conditions:
Additionally, businesses will need to file Form 1099-NEC
Nonemployee compensation can include:
Before you do anything, you need to have the doctor's office complete form W-9 so you have this on file.
Next, after reviewing the responses to the W-9, this will dictate whether or not you are required to issue any form 1099. You may not need to depending on what type of entity the doctor is part of.
https://www.irs.gov/pub/irs-pdf/fw9.pdf
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