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    ratan12's Avatar
    ratan12 Posts: 2, Reputation: 1
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    #1

    Jan 13, 2011, 09:12 AM
    Do we issue a 1099 misc to a car dealership which is an LLC?
    My company bought a car last year from a dealer who is an LLC. Do we issue a 1099 Misc to the car dealer?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jan 13, 2011, 09:38 AM

    Huh? Why would you ever issue a 1099 to a supplier?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Jan 13, 2011, 10:44 AM
    Because, under the new health care law passed by Congress last year, such 1099s WILL BE REQUIRED, even for supply purchases and even if the supplier is a corporation.

    However, that provision of the law is NOT effective for 2010, so, for now, no Form 1099-MISC is required for the purchase of the car.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #4

    Jan 13, 2011, 12:43 PM

    I was not aware of this - it really is bizarre. I can only hope that Congress undoes this ridiculous new requirement. If not, it would take effect in January 2012.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #5

    Jan 14, 2011, 10:33 AM
    You are not the only one hoping that. If that provision in the law is NOT over-turned, the IRS is looking at a exponential increase in the number of 1099s submitted. Even with computer support, they will NEVE be able to keep it straight; they barely do an adequate job under the current reporting requirements.
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