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Reporting exemptions for prize money payments?
August 29, 2024
Q. My company paid prize money valued between $25k - $50k to some companies that are classified as Corporations or C-Corp, S-Corp - LLCs. Are we required to provide 1099-MISC forms for the prize money paid to companies classified as corporations? Could you also reference the IRS guidance for this answer?
A.
(Answered by IOFM's third-party tax experts)
Reference Reg. sec. 1.6041-3(p)(1) - the “corporation exemption” to Form 1099 reporting applies. The prize payment is not 1099 reportable if the…
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