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Not-for-Profit Enews Update: Information on Form 1099-MISC (Part III)

January 23, 2014


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Note: This article concludes a three-part series discussing Form 1099-MISC.


Over the past two weeks we have been reviewing the Form 1099-MISC. The first week, we reviewed the basic filing requirement along with the filing deadlines and penalties for failure to file. The following week, we walked through the first couple of boxes (box 1, 2, 3 and 4) on the Form 1099-MISC that are generally required to be completed. We complete our overview of the form this week by reviewing the remainder of the boxes that are most commonly filled out.


BOX 6 – MEDICAL AND HEALTH CARE PAYMENTS

Payments made of $600 or more to a physician or other provider of medical or health care services is reported in box 6. This does not include payments to pharmacies for prescription drugs. If the payments are made to a corporation for medical or health care services, then the corporation is listed as the recipient rather than the individual physician providing the service.


BOX 7 – NONEMPLOYEE COMPENSATION

In box 7, you report payments of $600 or more paid as fees, commissions, prizes and awards for nonemployee services, as well as other compensation for services performed by individuals or partnerships. Examples include:


- professional service fees paid to attorneys, accountants, architects, contractors and engineers;

- amounts paid to a nonemployee;

- travel reimbursement for which the nonemployee did not account to the nonprofit;

- taxable fringe benefits for nonemployees;

- directors' and trustees' fees



BOX 14 – GROSS PROCEEDS PAID TO AN ATTORNEY

A payment that is only for attorney's fees is reported in box 7. A payment to a law firm that includes more than legal fees such as a payment to settle a lawsuit must be reported in box 14. Further, if the payment is made to the attorney for damages, you must furnish the form 1099 to both the attorney and the claimant.


This completes our three part overview of the FORM 1099-MISC. If you have any questions regarding the article above or any other issue affecting your not-for-profit organization please contact your Blue & Co. advisor or e-mail us at blue@blueandco.com or call us at 800-717-BLUE.