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1099 Reporting Responsibility for Middleman Payments
October 8, 2025
Q. We issue agriculture loans and lines of credit. Our client hires a construction company to do some work. They submit the construction bill to us. We issue the payment directly to the construction company and add this amount to our clients line of credit. Who is responsible for submitting the 1099?
A.
(Answered by IOFM's third-party tax expert)
This situation falls into what is called the "middleman" rules. Reporting depends on if the payer has management and oversight of the payment.See this…
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