- Membership
- Certification
- Events
- Community
- About
- Help
Contractor pass-through costs
January 26, 2023
Q. We have a reportable contractor that has outsourced some services and is invoicing these services to us as "pass-through" costs. Should these be charges be removed from the 1099 we are issuing?
A.
(Answered by IOFM's third-party tax experts)
If the contractor has substantiated the expenses according to the rules of an "accountable plan" of expense reimbursement, the payer may, but is not required to, deduct those amounts from the reportable amount. Accountable plan substantiation includes…
Become A Member
Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
