Originally Posted by JEANMARCB
HI. I have a company that purchased a rental home. When writing the offer, we had to write a check for earnest/escrow money to the title company for $3,000. Once the contract was executed, the title company cashed the check in the escrow acct. Then when we closed on the house, the $3,000 were deducted from the price. Do I (the company who purchased the home) need to send a 1099 MISC to the title company for these $3,000 ? Thanks.
You don't have to usually issue a 1099 to an incorporated entity. You don't have to issue a 1099 to all corporations, but you can issue one just to be safe. You won't get penalized for issuing a 1099 to a corporation when you didn’t have to.
You must issue a 1099 to any attorney you hired, even if that attorney operates a corporation. If your attorney lists a corporation as the name of the entity providing legal services, issue the 1099 to that corporation, not to the attorney.