I have a subcontractor that originally started working for me and was paid as a Sole Proprietor. This was in June, and I issued several checks to her personally. She then incorporated, and I issued checks to the corporation for the rest of the year.
She has requested that I only do a single 1099 for the corporation, and combine the payments I made to her personally on that 1099.
Is this a reasonable request? Is it any concern of mine how she wants me to file these payments?
Thanks,
Phil
She asking you to report other than what happened. Don't do it.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
I agree. Issue 1099's to the actual payees, and then tell her she can do a nominee 1099 if she wants to try to assign her income to the corporation that wasn't yet incorporated. If she's caught the IRS won't allow it. But if the amount of money is relatively small they may not kick up a fuss.
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