Thank you for the quick response @Vanessa A and @Carl !
- The service was in fact IT consulting and web development, so I think it's in the right place on the return forms ("OUTSIDE SERVICES/INDEPENDENT CONTRACTOR" row on the page called "Additional information from your 2021 US Form 1120s: Income Tax Return for S Corp").
- A couple follow-up questions - the amount I paid this contractor was $12,000, but I didn't issue an 1099-MISC. But I do have the bank statements and the copy of the check.
- Will the lack of 1099 cause an issue or red flag?
- An accountant friend told me a round number like that ($12,000) may raise a flag with the IRS. Is this actually true? If I paid $12,000 for a service, why would that raise a flag?
