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Business & farm
If the partner has their own separate business and that business bills the partnership for services rendered then that amount should be 1099 to the partner's business not the partner themselves and it becomes an expense to the partnership just like any other expense and the partner's business reports the income on that company's tax form along with any other income it generates.
Otherwise it is considered a guaranteed payment to the partner and no 1099 should be issued.
‎September 4, 2020
10:33 AM