Hi,

I am filing 1099's for my company for the first time, I have a couple of questions that are not clear to me in the IRS documentation.

It says that you do not issue a 1099 for merchandise. Our company purchases molds that a tooling shop produces for us, many of them are not incorporated; however, the end product is a "mold" or merchandise. I am confused because technically we do hire them to produce the mold, so I am confused as to whether I should issue them a 1099 or not. This also happens with other repair parts for equipment that are technically fabricated for us, but in the end we get the part, which is merchandise.

I'm am also not clear on non-profits that provide education, I know they are not for fundraising, but an example is Red Cross providing CPR training.

Advertising Services for help wanted ads - like newspapers.

Are Temporary Labor Employment Agencies reportable if not incorporated?

Thank you.

It is NOT general merchandise, but rather made-to-order products.

Issue the 1099s for custom work, the ad services if the newspaper if not incorporated, and the temp agency if not incorporated.

No 1099 is required for the Red Cross.

If you have no Tax Id that you provided to a vendor or the "wrong" tax id when you sent their 1099, what is your obligation?

The IRS copy has not been filed yet, can you just correct the IRS copy or are you obligated to send the vendor a corrected copy? And if yes, are you then fined for a late 1099?

You must provide the vendor with a corrected copy, but do it AFTER you file the IRS copy. Any fines incurred will be for filing late with the IRS, not with sending the corrected copy out.

When I file with the IRS - and I have corrections to 1099's that I know about, but haven't sent a corrected copy to the vendor yet, do I file with the IRS exactly what I sent to the vendor on the first 1099 (that either didn't have the tax id or apparently the wrong tax id) -when filing the 1096?

So when I originally sent to vendor I was missing the tax id on one, vendor had not returned the W9 and on another, had apparently been given the wrong tax id and received a new W9 after I sent the 1099.

Thanks.

No, file the 1099 that has the CORRECT tax ID numbers with the IRS.

THEN Send the corrected 1099s to the vendor.

The vendor does NOT attach the 1099 to his tax return, so getting it late with a different tax ID number will not matter.

We are church office and this past year had a couple of individual/contractors do some work for us. We have tried on numerous occasions to get their tax ID# or social security number with no success. What do I do about sending them their 1099 forms and our reporting to you?

Send the form W-9, which is the official IRS form to request such data.

If they fail to respond, submit the Form 1099-MISC to the IRS without the tax ID. The IRS will then track them down to get the required data under threat of a substantial fine.