Information Reporting Required for Payments to Corporations

• Posted on July 6, 2010
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Long Island CPA Firm Offering Tax and Financial Advice

For payments made after Dec. 31, 2011, businesses that pay any amount greater than $600 during the year to non-tax-exempt corporate providers of property and services will have to file an information report with each provider and with IRS.

This is a BIG Deal! This means that every individual and entity that is paid for goods and services in the course of business in excess of $600 must be issued a 1099. This information-reporting provision will substantially increase the paperwork burden on businesses.