- Membership
- Certification
- Resources
- Events
- Community
- About
- Help
Do You Issue a 1099 for Award Payments Made to an S Corporation?
January 7, 2026
Q. We recently made a payment to an "S" corporation for seed funding. As per our documentation, it is being considered an award payment. It is to help with the success of their business. In this situation, would a 1099 be issued for this type of payment although they are a corporation.
A.
(Answered by IOFM's third-party tax expert)
The corporate exception to reporting applies to awards. You would not report an award to an S-corporation.
122514
Become A Member
Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
