church send guest speaker a 1099 form?
I currently serve as a trustee at my church. When we have guest
speakers for special religious services, should we issue him a 1099
when we give him an honorarium of $100 or more?
The IRS requires that a business report payments for services performed
by independent contractors when the contractor receives $600 or
more in a calendar year.
Form 1099-MISC, Miscellaneous Income, is used to report
payments you make in your business. These 1099 forms are due to
the recipients by Jan. 31 following the year of payment and to the
IRS by Feb. 28. Generally an independent contractor is a person
over whom you do not exercise financial and behavioral control.
Typically an occasional speaker at a religious service
would be considered a contractor, as would an accountant or an attorney.
Federal tax law provides tax benefits to nonprofit
organizations, such as a church, recognized as exempt from federal
income tax under section 501(c)(3) of the Internal
Although Congress has imposed special limitations
(found in IRC section 7611) on how and when the IRS may conduct
civil tax inquiries and examinations of churches, the law requires
that most tax-exempt organizations must comply with federal tax
law to maintain that status and avoid penalties.
A church is considered a business for information-reporting
purposes and, accordingly, is required to file form 1099-Misc when
Use Form W-9 to request that an independent contractor
provide you with his or her name, address and tax identification
number for purposes of completing Form 1099-Misc.
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