IOFM Members rely on “Ask the Expert” whenever they’re stumped. IOFM's tax experts are standing by, ready to answer your 1099 compliance questions. And a panel of more than 100 AP practice leaders are also on call for your next best practice question.

Qualified Subchapter S Subsidiary

January 30, 2024
January 30, 2024


Q. I received information about  a W-9 a tax class I have never heard of: ABC Information dba XYZ Associates; entered under Other "Qualified subchapter S Subsidiary." Is that exempt? A. (Answered by IOFM's third-party tax experts) Yes, it is an "exempt recipient" not reported on most types of Forms 1099 (including the -NEC and -MISC).  If the owner entity elects the status, the Qsub falls under the same rules as "S corps", I.R.C. section 1361(b).  103126

  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!

Join Today

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.

Subscribe to our Monthly Insider

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500