E1: 1099: 1099 Programs should Allow Person/Corporation Code Values of Blank and C for Suppliers in Certain Scenarios (Doc ID 2849321.1)

Last updated on DECEMBER 01, 2022

Applies to:

Symptoms

Currently, none of the 1099 programs allow a value of Blank or C for 1099 suppliers. The only allowed values are N or P.

However, in certain scenarios and circumstances, a value of C should be allowed for 1099 suppliers. These are the exceptions:

• Rents
• Lawyer fees
• Services (lawn care, cleaning, etc)
• If the supplier is an independent contractor

Per the IRS site P. Payments to Corporations and Partnerships:

Generally, payments to corporations are not reportable. See, for example, Regulations section 1.6049-4(c)(1)(ii). However, you must report payments to corporations for the following. 

• Medical and health care payments (Form 1099-MISC).
• Withheld federal income tax or foreign tax.
• …
• Substitute payments in lieu of dividends and tax-exempt interest (Form 1099-MISC).
• …
• Payments of attorneys' fees and gross proceeds paid to attorneys (Form 1099-NEC, Form 1099-MISC).
• Fish purchases for cash (Form 1099-MISC).
• Credits and interest for qualified tax credit bonds reported on Forms 1097-BTC and 1099-INT.
• …
• Federal executive agency payments for services (Form 1099-MISC). For additional reporting requirements, see Rev. Rul. 2003-66 on page 1115 of Internal Revenue Bulletin 2003-26 at gov/pub/irs-irbs/irb03-26.pdf.
• …

Reporting is generally required for all payments to partnerships. For example, payments of $600 or more made in the course of your trade or business to an architectural firm that is a partnership are reportable on Form 1099-MISC

See also the IRS site Reportable payments to corporations.

Changes

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.