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leosun1987
Returning Member

Creating 1099-NEC for expense with incorporated contractor

Hi,

I am a landlord who owns a rental property. I need to create 1099-NEC for contractors I hired. One of the contractors I hired is a C-corporation and the expense is above $600. I thought filing 1099-NEC to a corporation is exempted (it was a tree removal work) based on https://www.irs.gov/instructions/i1099msc. But a tax professional told me as an unincorporated individual I need to file 1099-NEC no matter the other party is an individual or a corporation for an amount $600 or over. So I got confused now. I guess even though it is not required, I can file a 1099-NEC anyway. 

1 Best answer

Accepted Solutions
tagteam
Level 15

Creating 1099-NEC for expense with incorporated contractor


@leosun1987 wrote:

.....I guess even though it is not required, I can file a 1099-NEC anyway. 


You can file the form, but it is not required in this instance.

 

See https://www.irs.gov/instructions/i1099msc#idm140364727413952

View solution in original post

3 Replies
tagteam
Level 15

Creating 1099-NEC for expense with incorporated contractor


@leosun1987 wrote:

.....I guess even though it is not required, I can file a 1099-NEC anyway. 


You can file the form, but it is not required in this instance.

 

See https://www.irs.gov/instructions/i1099msc#idm140364727413952

View solution in original post

leosun1987
Returning Member

Creating 1099-NEC for expense with incorporated contractor

That is what I thought. Are there any filing requirements on the payer instead of the receiver? 

tagteam
Level 15

Creating 1099-NEC for expense with incorporated contractor

The payer has the filing requirement (if the threshold is met) with respect to the tax reporting statement (e.g., Form 1099-NEC).

 

The recipient is required to report the figure(s) on the statement on an income tax return if the filing threshold is met.

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