What are the rules on collecting W-9s and the 1099 reporting responsibility if we reimburse an employee for a donation and/or a charitable contribution in which he wrote a personal check?


In general, payments to tax-exempt organizations are not reportable according to the 1099-MISC Instructions. See page one, “Exceptions.” However, in this case how the employee gets reimbursed under either an accountable plan or non-accountable plan will determine if the reimbursement is subject to W2 taxable wage reporting. If the employee provides documentation supporting the contribution (copy of check and a remittance confirming the contribution from the charity), then the reimbursement is not reportable in the W2. However, if there is no support, then the employee could be subject to W2 reporting. We confirmed this with IRS information agent Ms. Taylor (#1006489).

A second issue would be to ask your tax advisor whether your company can take a charitable tax deduction for the business tax return. Logic would seem to indicate this would be okay; however, applying logic to the IRS tax code is not always that simple.

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