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

    Mar 1, 2011, 02:32 PM
    Do we issue a 1099 Misc to a independent contractor for travel expenses?
    This contractor will only have travel expenses reimbursed and no service income. I am confused as to the company is required to give a 1099-misc at the end of the year for his travel expenses.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Mar 17, 2011, 10:52 AM
    Because the contractor will likely deduct the travel expenses on his Schedule C and conveniently "forget" to report the reimbursement for those expenses.

    That is why the IRS requires that you issue him the Form 1099-MISC, to make him account for the reimbursement.
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