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Does the IRS require we only issue 1099s for services or can we report materials as well?
December 14, 2021
Q. We have many vendors that we utilize for engineering services. These vendors also bill us for material items. They do provide detailed invoices that separate out services and material amounts.
Each year we comb through hundreds of invoices to total only the service amount for each vendor and this is the amount we report on the 1099. This is a heavily manual process that takes countless hours each year-end. Is it an IRS requirement that we only issue a 1099 for the services or are we allowed…
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