IRS reporting of payments for services

Started by JohnH9 • 4 replies • 1221 views

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JohnH9 (Florida)
Posts: 2

Posted:

I am a new Treasurer of a self-managed HOA (180 units). Am I required to report to the IRS payments for services such as Contractors, Attorneys etc.? Previously there has been no reporting of such services, but the question has come up.
Jack

BrianB (California)
Posts: 2,820

Posted:

typically, you must report payments to employees. Payments to companies are not reportable. The difference is whether the vendor/contractor/etc. you are employing is legally a company or just a person. In general, you do not "employ" an attorney, you hire or contract them. A law firm employs them. Handymen, landscapers, etc. can be either way.

JohnH9 (Florida)
Posts: 2

Posted:

Thank you for the prompt response, Brian. I suspected that what you describe is the case, but I wanted confirmation.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Anyone that the Association pays for services should be given a Form 1099 - Misc. Income for their records. They can do what they want with them, but you are covered.

Check with your bookkeeper or CPA.

BrianB (California)
Posts: 2,820

Posted:

That's good advice susan...

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