Do i need to issue a 1099 to an S-Corp

[ec10hitch]

My wife's small business hired an S-Corp to do a website and she paid them about $1400.  They say some issue them 1099, some do not.  Do I need to issue them a 1099?  

[MartinW]

Hi ec10hitch,

I do not believe you need to issue a F1099 to a corporation. An S-Corp is a corporation.

Exceptions. Some payments do not have to be reported on
Form 1099-MISC, although they may be taxable to the
recipient. Payments for which a Form 1099-MISC is not
required include all of the following.
Generally, payments to a corporation. But see Reportable
payments to corporations, later.

Reportable payments to corporations. The following
payments made to corporations generally must be reported
on Form 1099-MISC.
Medical and health care payments reported in box 6.
Fish purchases for cash reported in box 7.
Attorneys' fees reported in box 7.
Gross proceeds paid to an attorney reported in box 14.
Substitute payments in lieu of dividends or tax-exempt
interest reported in box 8.
Payments by a federal executive agency for services
(vendors) reported in box 7

I’ve included a link to the IRS website for your reference.

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

I hope this resolves your question. If you need further help with this issue, please respond to this post.

Thank you for choosing TurboTax!

[anand_nithya]

The example appears to indicate that a 1099 may be needed.

Examples. The following are some examples of payments
to be reported in box 7.
Professional service fees, such as fees to attorneys
(including corporations), accountants, architects, contractors,
engineers, etc.

[John-Croyle]

The Short Answer
Most payments to corporations are NOT required to be reported on Form 1099-MISC. Corporations include both S and C corporations as well as limited liability companies (LLCs) that have elected to be taxed as a C or S corporation with the IRS. (This tax classification will be noted on the W-9)  However, as with most of the tax code, there are several significant exceptions to this rule.  The most significant of these exceptions are medical and healthcare payments, attorneys’ fees, and gross proceeds paid to an attorney.

Medical and healthcare payments – Payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services that is a corporation is reportable in box 6 of Form 1099-MISC.

Attorneys’ fees – The term “attorney” includes a law firm or other provider of legal services.  Attorneys’ fees of $600 or more paid in the course of your trade or business to a corporation are reportable in box 7 of Form 1099-MISC.

Gross proceeds paid to an attorney – A settlement agreement is an example of gross proceeds that would be reportable in box 14 under section 6045(f) when paid to a corporation.

The Long Answer
See the blog article "Are payments to corporations reportable on a 1099-MISC form?" at <a rel="nofollow" target="_blank" href="http://w9manager.com/are-payments-to-corporations-reportable-on-a-1099-misc-form-2/">http://w9manage...>