1099 question. when should i receive 1099 and who should i send it to?

Let make sure I understand your question: Company A paid Co LLC with 2 members for services(regardless what) therefore, Company A needs to issue a 1099 for the LLC. Then you mentioned the LLC - subcontracts/ paying company C - so, they need to issue also a 1099 for Co. C LLC. And if Co. C is also yours then you need to issue a W2 to the employee of Company C. You have all these LLC's Did you consult or seek the advise of Professional Tax Advisor. That really can help you I really suggest you seek help.

1099's are due to the payee by January 31, 2009 then you have more time to file the 1096's with the gov.

You can get more info from IRS website & your State's website for filing rules.

Here is IRS:

www.irs.gov

Good Luck

Lordis Gawzner, EA

A2T Consulting, Inc.

hi Lordis,

Thanks for the answer. But i think there is a small miscommunication.

Company A is paying our company which is an LLC ( owned by two people) . My company is paying another Company C for an employee they have. We have been sending checks to company C based on the hours submitted by their employee. Company C pays what ever they pay for their employee from the amount we send.

Should i expect get a 1099-misc from Company A?

Should we send a 1099-misc for Company C for their employee?

Hi

Great you shed some light - that's why I wanted to make sure I am understanding your question.

Yes, You should be getting a 1099-misc from Co. A - you are an LLC and if company "A" follows the rules they will issue you the 1099. Regardless what co. A does, you make sure to send a 1099 to company C, so IRS will let you keep the deduction if you were audited. However, if you got a 1099 or not make sure to report the income so you are not stuck when audited - not reporting the income & taking the expense. Even when they are a wash you still need to report the income & the expense. So Yes, you need to send a 1099-misc for company C.

By the way the due date to issue the 1099 would have been 1/31/09 but its a W/E so the next working day.

Here is the form for your company to request from vendors/payees so you have full records for your 1099's and signed by the company.

http://www.irs.gov/pub/irs-pdf...

Link to the Form - for info. but make sure you use one issues by IRS or get the accepted ones for scanning.

http://www.irs.gov/pub/irs-pdf...

And check the web site for your state req.

Regards,

Lordis Gawzner, EA

A2T Consulting, Inc.

Hi Lordis,

One last question. We got the W-9 from Compnay C. they are an LLC but they checked the tax classification as Corporation from the list of the three choices Disregarded entity, corporation, and partnership. I read somewhere that if it is a corporation we dont need to give 1099. So does that mean since Company C although an LLC lsted them as corporation for tax classification on W-9, we dont need to issue 1099 for them.

Thanks again for your help