Drew Edmundson wrote:

- quote -

Well, those regulations tell us they are the definition for
federal tax purposes, which would seem to include this. Of
course, considering the payor can't really know which
election was made.

This is just one of those quirks that occur when you have
this "fiction" <grin> that was created by check the box.
The practical answer, I think, is you issue the 1099
*unless* the other party indicates the entity is a
corporation for federal tax purposes under check the box.

--
Ed Zollars, CPA
Phoenix, Arizona

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Ed Zollars, CPA" <ezollar[at]mindspring.com> wrote:
- quote -

The last time I looked the IRS hadn't made a statement,
directly on point, on whether an LLC taxed as a Corporation
would have to be sent a 1099 or not.

Logically I agree with your analysis, I just have no cite to
support it beyond reading the "check the box" regulations.

To the OP, send a 1099, better safe than sorry.

Drew Edmundson, CPA (NC)

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Bill Lentz wrote:

- quote -

Hmm, if I had time I'd follow up to make sure but I believe
the answer is that the LLC's election under "check the box"
would determine the answer--which, of course, you as a payor
wouldn't know <grin> . So the real world answer is no, and
it's likely the correct answer in 99.99% of the cases. The
IRC requires reporting payments made for services to
noncorporate payees. An LLC is not a corporation, although
it may elect to be one for purposes of the IRC.

Since most LLCs are formed to be taxed as partnerships for
federal tax purposes, they would clearly need to receive a
1099. What's not completely clear is whether an LLC that
had elected to be taxed as a corporation for federal income
tax purposes would have to receive one--but, clearly, the
payor isn't going to know that normally unless they are
told.

--
Ed Zollars, CPA
Phoenix, Arizona

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Is an LLC considered a corporation for purposes of 1099
(non) reporting?

Thanks
Bill Lentz

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