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1099 reporting exemptions for corporations

February 2, 2024
February 2, 2024

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Q. I wanted to confirm for yearly software agreements and medical payments is there a corporation exemption for those type of payments or do we need to issue a 1099 regardless? A. (Answered by IOFM's third-party tax experts) The "corporation exception" of federal tax Reg. sec. 1.6041-3(p) applies to payees for software use so those payments are not Form 1099 reportable if the vendor is incorporated.   The exception is specifically denied to payees for medical and health care services so those…

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