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Under what circumstances 501(c)3 organization required to get the W-9 forms from the vendors?

Piscataway, NJ |
Filed under: Non-profit business

Our cleaning company requested us to make check payable to their account receivable factoring company. We receive an invoice from the factoring company for the work done by the cleaning co. Do we have to send the 1099-Misc even though we get the invoice. If yes, who gets it?

Attorney Answers 3

  1. Best answer

    Yes, anytime you pay more than $600 to any entity or person except corporations you must 1099.

  2. Receipt of an invoice does not preclude an otherwise required 1099, which you will be required to file unless an exception applies (e.g., a corporate recipient, but it's still best practice to obtain where possible).

    You always 1099 a payment recipient--in this case, the factoring company.

  3. Yes - and if I were keeping the records, I would record the entity as the cleaning company, with a billing address of the billing company - with the 1099 going to the cleaning company.

    This should not be considered legal advice and is intended for educational purposes only. It does not constitute a contract for legal services between any parties. Answers are given to questions for which there may be additional facts not mentioned which might change the legal issues or consequences.

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