no 1099 for you!
February 6, 2011 4:11 PM Subscribe
1099 form issuance refused. what to do?
posted by mwhybark to Work & Money (8 answers total) 2 users marked this as a favorite
Last year I had a variety of income sources including several ad-hoc clients who are not accustomed to issuing 1099s. I sent them all reminders with the totals they had paid and links to the IRS info regarding the federal requirement that a 1099 be issued to me by January 31. One of the clients, my most important, flat-out refused. In general, this client files extensions until around August and in August they might get around to filling out a 1099.
I have their EIN and could easily fill out the form myself. I also file online and thus there is no requirement to send a physical copy of the form in with my return.
There is a line-item for non-1099 income, which appears to be a reporting trigger for the non-1099 company. In other words, my client is daring me to report them to the IRS for non-compliance.
Finally, this year I have set up an S-Corp and an LLC with the intent that my consulting work is paid to the LLC and my other income (retail sales and the like) is paid to the S-Corp (last year I was a sole proprietor, duly licensed and permitted). I would like to defuse the untenable dependence on 1099 reporting from uncooperative clients. I know that funds paid to an S-Corp don't have to be 1099 reported at all. Is this also true for the LLC?