Tax Accounting Help
August 15th, 2008
Question: How does tax accounting work for Business to Business payments?
Do payments made to corporations get reported to the IRS the same way they do for 1099?
Answer: No. You do not need to send a corporation a 1099 for payments for service (the exception being a law firm, even incorporated they should get 1099s). There is no other method for the IRS to check up on the income reported by a corporation other than doing an audit.
The idea behind the 1099 form was to get smaller business/indepedent contractors (parternships, LLCs, and individuals) to be forced to report their income. Apparently the government wasn’t as concerned with corporations underreporting their income.
Purdue graduate joins accounting, tax practice
Nicholas Apling has joined the accounting and tax practice of Robert Apling and Associates, certified public accountants.
Get help with tax forms and filing- watch this video!
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