FORM 1099 REQUIREMENTS
Updated July 26, 2006
- General University Form 1099 Reporting Requirements - Generally a paper Form 1099 must be issued to each vendor who receives a payment from the University. Copies in a magnetic media format must also be sent to the Internal Revenue Service and to the Massachusetts Department of Revenue - using the transmitter control code 08942 and the tax identification number 04-6002284. Although a limited exception applies to payments of less than $600 made by a vendor in a calendar year, the $600 test appears to apply at the Commonwealth of Massachusetts level.
- Employee Business Expenses - Form 1099 reporting requirements do not apply to payments that represent reimbursement of documented employee business expenses.
- Payments to Nonresident Aliens - Form 1099 reporting requirements generally do not apply to nonresident alien vendors. Forms 1042S must be issued to nonresident alien vendors.
- Payments to Corporations - Form 1099 reporting requirements generally do not apply to payments to corporate vendors other than attorneys and certain medical billing corporations. Payments to all partnerships and other non-corporate entities must be reported on Form 1099. In certain cases, manual effort may be required to capture Form 1099 reporting data for partnerships and other non-corporate vendors.
- Payments to Attorneys - Payments to attorneys in connection with legal services (whether or not the services are performed for the University) must be reported. This requirement applies to payments made to attorneys practicing as individuals, partnerships, and corporations. Such payments are generally reported in Box 7 of Form 1099 MISC.
- Purchasing Card Transactions - University purchasing card transactions are subject to Form 1099 reporting requirements.
- Tax Identification Numbers - All Forms 1099 must include tax identification numbers. Payments to a reportable payee without a tax identification number, are generally subject to tax withholding at the time of payment. Any tax withheld should be promptly remitted to the Treasurer's Office.
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