1099 required for payment?


1

I run a small website. I sold $100 of ad space to a local business. They asked me to send them a 1099 so they can set me up in their accounting department. I'm not sure how this works or why I need to give them any paperwork.

Legal Tax Accounting

asked Jul 21 '11 at 05:06
Blank
Website Needs 1099
8 points
  • You don't send a 1099, it's given to you at the end of the year. I think Jack's comment, that they are asking for a W9, is more likely. – B Mitch 9 years ago

1 Answer


4

The Internal Revenue Code requires businesses to report payments of $600 or more for services on form 1099. They actually want you to send them a Form W-9 that has your information on it so that if they end up paying you that much during the year, they can issue a 1099 to you. It's no big deal unless you don't report your income. For a number of reasons, most businesses receive more income than is reported on 1099s. But the IRS checks to see if you report at least as much for your business as you received in 1099s. If so, then they move on.

answered Jul 21 '11 at 06:01
Blank
Jack Rodenhi
607 points
  • aha, a W-9. that's probably it. I thought it was weird that they would ask ME for a 1099. That's what I get for assuming they knew what they were talking about. thank you – Website Needs 1099 9 years ago

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Legal Tax Accounting