Asked by Dustin Godtfring on May 12, 2024
Verified
What is a 1099 and when is it prepared?
A) A 1099 is an IRS Form completed for sole proprietorships and partnerships that a company paid $600 or more for services in a year.
B) An IRS Form completed for corporations that another company paid $600 or more for services in a year.
C) An IRS Form completed for individuals a company paid $6,000 or more for services in a year.
D) An IRS Form completed for sole proprietorships and partnerships a company paid $60 or more for services in a year.
1099
A series of IRS tax forms used to report various types of income other than wages, salaries, and tips.
IRS Form
A document that is used for reporting and filing information with the Internal Revenue Service (IRS) in the United States.
Sole Proprietorships
A business structure where the business is owned and run by one individual, with no distinction between the business and the owner.
- Determine the criteria and steps necessary for the preparation and utilization of 1099 forms with vendors.
Verified Answer
MK
Madan KesanapalliMay 17, 2024
Final Answer :
A
Explanation :
A 1099 is an IRS form that is completed for sole proprietorships and partnerships that a company has paid $600 or more for services in a year. It is used to report payments made to non-employees for services rendered. It is typically prepared and provided to the recipient by January 31st of the year following the payment.
Learning Objectives
- Determine the criteria and steps necessary for the preparation and utilization of 1099 forms with vendors.