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Should You Issue a 1099 When Payment Was Misrouted?
June 2, 2025
Q. My company received ABC Corp invoice. Unfortunately, my company made a mistake and paid mentioned invoice to XYZ LLC. Then XYZ LLC transferred funds to ABC Corp. The final beneficiary of funds is ABC Corp. XYZ LLC is 1099 reportable, however, ABC Corp is not. Should this invoice amount be included in XYZ LLC 1099 total? XYZ LLC does not want the amount to be included in this year 1099 total amount as XYZ LLC is not the beneficiary and XYZ LLC is no longer in possession of funds.
A.
(Answered…
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